convergence of gdp per capita in asean …2)-vol4(1).pdftesting the income convergence hypothesis....

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CONVERGENCE OF GDP PER CAPITA IN ASEAN COUNTRIES

Rupal Chowdhary* Shubhangi Jore*, Raksha Thakur*, Kalpana Agrawal* and Vishal Geete**

Economists have long debated whether different countries and regions within countries are

converging over time in terms of per capita income. In the last decade the convergence debatecaptured the attention of macroeconomic theories and econometricians. The increasing diversity

of average growth rates and income levels across countries has generated a large literature on

testing the income convergence hypothesis. Most countries in South-East Asia, haveexperienced substantial economic growth, with the pace of growth having varied substantially

across countries. In this paper, test of convergence was applied to determine if there is a

convergence club for ASEAN-9 countries and whether, the catching up hypothesis which statedthat the lagging country, with low initial income and productivity levels, will tend to grow

more rapidly by copying the technology of the leader country, without having to bear the

associated costs of research and development. The finding of â and ó convergence in the studysuggests that ASEAN countries are converging towards common GDP per capita steadily

but slowly. However, while convergence has occurred, the speed at which the initially poor

countries are catching up with the initially rich countries is slow.

the new global environmental challenges andopportunities. The nature of these economicintegration relationships usually results inachieving synergy effects.

The Association of Southeast Asian Nations,or ASEAN, was established on August 8, 1967 inBangkok, Thailand, with the signing of theASEAN Declaration (Bangkok Declaration) bythe Founding Fathers of ASEAN, namelyIndonesia, Malaysia, Philippines, Singapore andThailand. Further it was joined by Lao PDR,Myanmar, Cambodia and Bruinie-Daruslam andPhilippines. Thus, it becomes imperative to knowwhether the fruits of economic integration havebeen reaped equally by low-income and high-income economies. Today, ASEAN hasdeveloped an organisational structure that looksnot only into the political and economic issuesin the region but also social developmentalissues. The increasing diversity of averagegrowth rates and income levels across countrieshas generated a large literature on testing theincome convergence hypothesis.

Most countries in South-East Asia, haveexperienced substantial economic growth, withthe pace of growth having varied substantially

PIJMR, Vol. 3(2), July 2010 & Vol. 4 (1), January 2011

*Faculty Member, Prestige Institute of Management and Research, Indore**Faculty Member, Acropolis Institute of Technology and Research, Indore

INTRODUCTION

In the current global era there has been agrowing importance of the economic integrationapproach and relationships among blocks ofcountries. This has resulted from aggressiveglobalization (emerging from the gianteconomies), increasing similarities of tastes andattitudes, deregulation and eliminating ofphysical, fiscal/financial and technical barriers,speedy scientific and technical innovations, andpredictive uncertainty. The main reason behindthis is that most of the countries cannot alwayshave the resources or knowledge to cope withincreasingly complex global environments frominternal resources alone. Thus, the traditionalthinking about the special intensity ofcompetition and marketing activities as well asthe old nature and boundaries of countries andorganizations become less and less useful inorganizing economic activities. In effect, aneconomic alliance or network based cooperation,collaboration, cost reduction, interest sharing,adaptation, flexibility, cost reduction, sharedobjectives, closeness, openness, and acommitment between different countries(collaborators) on an integrating ongoing basis-,has emerged as a more effective approach to meet

2 Prestige International Journal of Management and Research

across countries. In the last three decades, therehas been a rapid rise in the economies of EastAsian and South East Asian nations. The twentythree economies of east Asia grew at a fasteraverage rate than all other regions in the worldover the 1965-90 period as reported by WorldBank (1993).The high performing Asianeconomies (HPAE) such as Japan, the four AsianTigers (Hong Kong, South Korea, Singapore andTaiwan),and the three South-East Asian newlyindustrializing economies (Indonesia, Malaysiaand Thailand), has grown at a rate more thantwice as fast as the rest of East Asia since 1960.After the phenomenal growth of the Japaneseeconomy, the growth pattern in HPAE followeda flying geese pattern respectively by Hong Kong,South Korea, and Taiwan and more recently byseveral countries from South East Asia.

The formation of ASEAN can be attributed togeographical proximity and regional economicand political co-operation among its membercountries. In the past 30 years, the ASEAN-5countries that differ considerably in size, levelof economic development and resourceendowment have undergone profoundtransformations. Each country has experiencedsubstantial industrial diversification andeconomic growth due to the adoption ofexportoriented trade policies, the rapid flow offoreign direct investment, and soundmacroeconomic policies. Selected indicators forthe ASEAN countries are shown in (Table 1).Amongst the ASEAN-5 countries, Singapore isthe smallest in terms of area and population, buthas the highest GDP per capita, with no foreigndebt, whereas, Indonesia is the largest, but alsohas the lowest GDP per capita and the highestexternal debt. The sources of rapid and sustainedgrowth, and the shared characteristics amongthe ASEAN-5 countries over the past threedecades, were higher levels of foreign directinvestment, physical and human capitalaccumulation, and export growth, as well asmacroeconomic stability (see Lim, 1999).

Economists have long debated whetherdifferent countries and regions within countriesare converging over time in terms of per capitaincome. The independent interest inconvergence whether poor economies who arein embryonic stage tends to catch up with richer

ones is a basic question and of considerableinterest for economic integration. It addressesthe concern of policy makers and brings toanalysis ideas and insights into the economicsof income distribution and redistributive policy.In the last decade the convergence debatecaptured the attention of macroeconomictheories and econometricians. Recent empiricalstudies have found evidence of severalconvergence clubs, in which per capita incomeshave converged for selected groupings ofcountries and regions. In this paper, test ofconvergence was applied to determine if thereis a convergence club for ASEAN-9 countries andwhether the catching up hypothesis whichstated that the lagging country, with low initialincome and productivity levels, will tend to growmore rapidly by copying the technology of theleader country, without having to bear theassociated costs of research and development.The paper also aims to describe the concept ofâ-convergence.

REVIEW OF LITERATURE

The testing of real income convergence, i.e.,convergence in per capita output across differenteconomies is most challenging in the recentinternational economic literature (Islam, 2003).There are three main reasons because of whichthe study of this subject becomes interesting.Firstly, this exercise can help us to discriminatebetween various economic growth modelsavailable. The neoclassical model predicts thatper capita output will converge to each country�ssteady-state or to a common steady-state,regardless of its initial per capita output level(Solow, 1956). Countries with low initial percapita income have low-ratios of capital to labourhence a higher marginal product of capital.Internationational capital would flow to areaswith relatively high rate of return which is toareas where capital is relatively scarce. Therefore,capita labour ratios will move over time toequality and with them factor prices. This is theclassical prescription of the neoclassical growthmodel with decreasing returns. This wouldimply that capital would flow from rich to poorcountries and income in poor countries wouldgrow faster than incomes in rich countries andthat too would eventually converge. Butendogenous growth models, by underlining the

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importance of initial conditions and thepossibility of multiple equilibriums, show thatthere is no tendency for income levels toconverge in the long-run (Romer, 1986, 1990).Lee et al. (1995) found no evidence ofconvergence on examining 102 non-oilproducing countries over the period 1960-89 andstated that it seems unlikely that there is acommon equilibrium across all countries. Baumolet al. (1989) argued that if one looks separately atlow income, middle income and high incomecountries there is a evidence of convergencewithin each group. However, thirdly on theempirical side, strong differences have beenobserved in per capita output and in growth ratesacross countries during the last three decades,and especially between many African economiesand emerging Asian and developed economies(Maddison, 2003).

There are at least three different types ofconvergence tests which exist in the growthliterature. The most common test of convergenceis to regress the average growth rate on the initiallevel of real per capita output using cross sectiondata (see Barro, 1991). The concept of b-convergence, given by Barro, implies that poorcountries grow faster than rich countries.Typically, the existence of convergence is testedby running so-called Barro (1991) regressionswhich involve regressing the growth in per capitaGDP on its initial level for a given cross-sectionof countries (or regions within countries).Convergence in the unconditional sense isimplied, according to this methodology, if thecoefficient on initial per capita GDP is negativeand statistically significant. A negative estimateof â is said to indicate �absolute â convergence�across countries. If other characteristics ofeconomies such as the investment ratio,educational attainment and other policyvariables are included in the growth regression,a negative estimate of â is said to indicate�conditional â convergence�. However, thismethodology has been criticised by Friedman(1992) and Quah (1993) who point out that theseregressions are liable to produce biased estimatesof b-convergence. Friedman (1992) suggests thatthe simple trend in the coefficient of variation ofper capita GDP provides an unbiased estimate ofbconvergence. Quah (1993) suggests amethodological approach that is capable of

capturing the full dynamics of evolving cross-country distributions of per capita GDP. A secondmeasure of convergence is to determine if thedispersion of real per capita income is falling overtime, namely �ó convergence� (see Barro and Sala-i-Martin, 1992). However, the convergence canalso be checked in a time series framework. Thusthe third definition of convergence is todetermine whether there exists a commondeterministic and/or stochastic trend fordifferent countries (see Bernard and Durlauf,1995). In this case, convergence for a group ofcountries means each country has an identicallong-run trend.

The wave of regionalism which widely spreadin the 1990s has spurred academic andprofessional interest towards the economiceffects of Regional Integration Agreements(RIAs). The most prominent effect of RIA is tostrengthen trade links and hence to facilitatetechnological spillovers across borders. Then, asa result income levels should converge and theinitially poorer member states would catch upwith the richer ones. However, in a recenttheoretical article, Venables (2003) stated thatincome dispersion across countries in a RIA willdecrease only in the case of North-Northintegration (or at most North-South). On thecontrary, South-South integration could easilylead to income divergence and unequaldistribution of welfare gains.

Bernard and Durlauf (1995, 1996) proposedto consider convergence as a stochastic process,using the properties of time series, and test theconvergence hypothesis from unit root tests.However, time-series unit root testing had beenoften criticized for its limited power and poorsize properties (Haldrup and Jansson, 2006). Thesmall number of observations available on thetime-series dimension would then make thecountry-by-country analysis of incomeconvergence in RIAs of recent formationparticularly problematic. Therefore, Evans (1996)suggests exploiting both the time-series and thecross-section information included in the dataof the per capita income in order to evaluate theconvergence hypothesis. With this approach, thecrosssectional and time-series information arecombined, thus inducing a significantimprovement in terms of power of the test.

Convergence of GDP per capita in Asean countries


A lot of empirical work has been done on thevarious regional economic groupings whichchecked the convergence of GDP acrossdifferent regions of the world. Many of theresults obtained in the literature strongly dependon the set of regions considered, the sampleperiod, and the estimation method used.Moreover, most of the works are based on eithercross-sectional or fixed effects estimates. Ingeneral, studies based on fixed effect models,produce much higher convergence rates thanthose obtained using cross-country regressions.Both cross-sectional and fixed effect models,however, are obtained by imposing strong priorrestrictions on the model parameters. The firstimposes absolute regional homogeneity in theparameters of the process describing GDPgrowth. The second allows for heterogeneity, butthis depends only on the intercept term as if allthe differences in the GDP growth rates weredetermined by the starting point for each region.An alternative approach has been proposed byPeracchi and Meliciani (2003) that postulated apanel-data model in which all parameters candiffer across regions. In this way not only themodel avoids the imposition of strongrestrictions, but it also provides spatiallydistributed coefficient whose pattern can addsignificant insights. They found significantcorrelation of growth rates across neighboringregions and between regions belonging to thesame country. Furthermore, a series of papers(Arbia et al., 2002; Arbia et al., 2003; Baumont etal., 2002) amongst the other, have shown thatthe presence of spatial effects matter in theestimation of the convergence process both interms of different spatial regimes and in termsof significant spatial spill-overs. Spatial effects,but incorporated within a continuous timeframework, were also discussed by Arbia andPaelinck (2003 and 2004).

According to Ben-David and Rahman (1996),countries that trade extensively tend to convergemore than countries that have less mutual trade.They examine two possible explanations. First,that trade-related income convergence is becauseof convergence in capital-labour ratios. Andsecond, that there is a trade-related convergencein technologies. They argue that the latterexplanation is supported by high convergencein total factor productivity between countries

that have extensive trade relations. Ben-Davidand Kimhi (2000) provide evidence that especiallyincreased exports from poorer countries towealthier ones are related with an increase inthe speed of income convergence between them.They also argue that after liberalisation, there isa significant increase in trade, which tends tolevel off and then remain at its new higher levelat the end of liberalisation. According to Ben-David (1993), the liberalisation of trade amongthe six original EEC countries led to incomeconvergence. Further, the timing of trade reformamong the EEC and the EFTA countries wasfound to coincide closely with convergence. Ben-David (1996) provides an analysis of several traderegimes and similar results of the positive effectof trade liberalisation.

Mankiw et al., (1992) argue that in thetextbook Solow growth model, convergence takesplace at a rate of 4 percent, which would implythat the economy moves halfway to its steadystate in 17 years. On the other hand, if thetextbook model is augmented by human capital,the convergence rate declines to 2 percent andthe economy moves to its steady state in 35 years.Higher education makes it easier to adopt newtechnology. For example, Mankiw et al., (1992)and Bassanini and Scarpetta (2001) find evidenceof the positive effects of schooling for growth.Wagner and Hlouskova (2002) base their analysison the historical convergence of the EUcountries and then project it on the accessioncountries. They estimate the time it takes for theaccession countries to catch up with the EU15countries. With the exception of the wealthierSlovenia and the Czech Republic, they estimateit to be three or four decades.

A lot of studies have been done on theconvergence of GDP per capita in Europeancountries but little work seems to exist in the caseof ASEAN countries. However, Lim andMcALeery (2004) have done a study on fivefounding members of ASEAN. The studyrevealed a negative correlation between theaverage growth in income and its initial level forASEAN-5 and ASEAN-5/ USA countries, but theestimates were insignificant. Similarly, for thecross-country income deviations for ASEAN-5and ASEAN-4, there were no reductions inincome dispersion. Thus, in this paper an

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attempt is made to study the convergence of GDPper capita in the case of all the ten membercountries of ASEAN.

OBJECTIVE OF THE STUDY

The objective of the study is to examine theconvergence of GDP per capita in the ASEANcountries for the period of 1990-2008.

RESEARCH METHODOLOGY

The Data: The data of the study consists ofannual per capita GDP data from World BankData Base for nine ASEAN economies in PPP USdollars, and spans from 1990 to 2008. Thecountries which form the ASEAN are Indonesia,Malaysia, Philippines, Singapore, Thailand,Brunie-Darussalem, Vietnam, Lao PDR,Myanmar, Combodia. Since per capita GDP inPPP US $ for Myanmar was not available, it hasbeen omitted from the analysis.

The Model: The study is based on theaccepted version of the neoclassical growthmodel. The model imply that if the rates of timepreference and production functions are thesame across regions or countries then per capitaincome in due course converge to a commonequilibrium value. Beta and Sigma-Convergenceare two different measures to measure similarityin the income, identified by Barro and Sala-i-Martin (1991, 1992). Beta convergence occurswhen GDP per capita in low income countriesgrows faster than that of the high per capitaincome countries. It is hypothesized that thereexists a convergence in the GDP per capita.

Beta-convergence is estimated using theregression:

yi, t0

= GDP per capita in PPP (US $) incountry i in year t

0

yi, t0+T

= GDP per capita in PPP (US $) incountry i in year t

0 + T

T = period length

â = speed of convergence

åi,t0,t0+T

= distributed lag of the error terms, åit,

between years t0 and t

0+T

If beta-convergence exists, coefficient of initialGDP per capita should be negative and â mustbe positive, and this will be true if â > 0.Parameters for equation (1) can be estimatedusing a log-linear model with values of â-coefficients across the ASEAN countries for theperiod from 1990 to 2008

In addition, existence of some exogenousconvergent clubs in the ASEAN has also beenanalysed among some groups of ASEANcountries. Country groups are shaped accordingto the criteria of HDI. The importance ofeconomic development (human capital, health,infrastructure etc. ) have been demonstratedsince a long time ago (Gillis et al., 1987). Recently,the New Growth Theory insisted on the crucialimpact of the initial development conditions foreconomic growth and convergence. For thatpurpose, the paper first focused on theclassification of the United Nations DevelopmentProgram based on the Human DevelopmentIndicator [HDI]. Nevertheless, it fixed a thresholdvalue of 0.6 so that there were two groups: theHigh/Moderate Human Development Indicator[HMHDI] group and the relatively Low HumanDevelopment Indicator [LHDI]. The two groupsthus formed are group 1 having high HDI i.e.Indonesia, Malaysia, Philippines, Singapore,Thailand, Brunie-Darussalem and Vietnam. Thegroup 2 having low HDI i.e. Lao PDR andCambodia.

RESULTS AND DISCUSSION

For the preliminary analysis the simplecorrelation coefficient have been calculatedbetween log of per capita GDP (1990) and theaverage growth rate of per capita incomebetween 1990 and 2008. The simple correlationbetween them is found to be -0.88 which issignificant at 1 percent level of significance.Figure 1 represents the relationship between thelog of per capita GDP (1990) and the growth rateof per capita income between 1990 and 2008 fornine ASEAN countries. The analysis of therelationship between the initial log of per capitaincome (1990) in ASEAN countries and theaverage growth of per capita income between1990 and 2008 for these countries has given anegative relationship between these two variableswhich indicates that the countries which havelow per capita income in the initial stages grow



faster than the countries with high per capitaincome. Further the â convergence was applied.The value of â is -0.01339 which is significant at 1percent level of significance. Whereas, the valueof â is positive and is significant at 1 percent levelof significance (Table 2). Hence, there exists anabsolute convergence in ASEAN countries for thesaid period and are approaching towards acommon steady state. This study is in contrastwith that of Lim and McLeer (2004) which foundinsignificant â in the case of ASEAN-5 founding

members. The possible reason for significantdifference in the results might be theconsideration of all the nine members in thecountry and consideration of GDP per capita inPPP.

To asses the extent to which there has been óconvergence across ASEAN countries, theunweighted cross-sectional standard deviationof the log of per capita income has been used.Figure 2 displays the behaviour of the dispersionof GDP per capita. The dynamic sequence in

Figure 1: Per capita growth and initial GDP

Figure 2: Sigma Convergence of GDP per capita in PPP (US $) from 1990-2008

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Figure 2 suggest a reduction in GDP per capitaover the period of 1990 to 2008 showing that cross-country income during this period is equalizingsteadily and slowly. A closer scrutiny furtherrevealed that the standard deviation showed a21.73 percent decline over the eighteen yearsdisplaying evidence of ó-convergence accordingto the criteria used by Friedman and Sala-i-Martin.

To asses the extent to which there has been óconvergence across ASEAN countries, theunweighted cross-sectional standard deviationof the log of per capita income has been used.Figure 2 displays the behaviour of the dispersionof GDP per capita. The dynamic sequence inFigure 2 suggest a reduction in GDP per capitaover the period of 1990 to 2008 showing that cross-country income during this period is equalizingsteadily and slowly. A closer scrutiny furtherrevealed that the standard deviation showed a21.73 percent decline over the eighteen yearsdisplaying evidence of ó-convergence accordingto the criteria used by Friedman and Sala-i-Martin.

Further, convergence was tested excluding thecountries with low human development index(HDI), Lao PDR and Cambodia, and showedvalue of B to be -0.01127 which is insignificant.This is the indication of no-convergence in the

ASEAN countries if these countries are excluded.The convergence was then tested with the helpof ó-convergence as â-convergence is thenecessary but not the sufficient condition forexamining convergence. In this study it wasrevealed that if Lao PDR and Cambodia ifexcluded from the group the standard deviationincreases over a period of 1990-2008. Thus itfurther supports the outcome of â-convergencethat if these countries are excluded convergenceof GDP per capita is not achieved. Thus, it canbe said that the countries which are low on HDI,if included in ASEAN group, starts catching upwith the other high per capita income economies.This reveals the success of regional economicintegration and the fruits of development arereaped by not only high per capita income butalso by low per capita income economies.

To further validate the results, convergencewas separately tested for pre and post South EastAsian Economic crisis. It was found that in thepre-crisis period (1990-1998) the â is insignificantindicating that the GDP per capita was diverging.But during the post-crisis period the â (0.0076) issignificant at 5 percent level of significance. Thusthe convergence is present in the post crisisperiod however speed is slow. The convergenceof GDP per capita might be due to the fact thatmost of the economies in the ASEAN countriesare small and they are following more or less

Figure 3: Dispersion of GDP per capita excluding Lao PDR and Cambodia



same policies. For example in all these countriestheir share of total trade to GDP is very highand all these member countries are thriving onthe tourism.

CONCLUSION

The neoclassical approach, which guided ouranalysis, suggests that if economies are similar,we would find absolute â convergence and óconvergences. Our finding of â and óconvergence suggests that ASEAN countries areconverging towards common GDP per capitasteadily but slowly. However, while convergencehas occurred, the speed at which the initiallypoor countries are catching up with the initiallyrich countries is slow. This study is in line withJones (2002) who has found the similar resultsfor ECOWAS, a regional economic integrationgroup of Africa. In this study it is quite interestingto note that low income economies like Lao PDR,Cambodia and Vietnam are catching up with thehigh per capita income economies thussupporting the hypothesis of Solow.

For some of the low-income countries inASEAN, big differences in per capita GDP acrosscountries have to be regarded as undesirable forthe economic integration process. The policydiscussion of economic integration in the regionis based on the idea that the convergence in percapita income depends on convergence in certainmacroeconomic characteristics like inflation,public sector deficit, and external accounts.Hence the focus has been largely been on thequestion of to what extent convergence in thesefactors can be achieved. As the rate ofconvergence is slow, it can be said that moreproactive economic policy coordination wouldbe beneficial to the region and should beencouraged.

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DEVELOPMENT OF EMOTIONAL LABOUR SCALE IN INDIANCONTEXT

Niharika Gaan*

This paper reports the development and validation of Emotional Labor Scale (ELS) as tested onsamples collected from selected B-Schools of India. The ELS is a 12-item self reportingquestionnaire that measures four facets of Emotional Labor (EL) in the work place, which includesemotional display, deep acting, surface acting and automatic regulation. Estimates of internalconsistency for the subscales range from 0.67 to 0.89. Exploratory factor analysis results providesupport to the four facets of ELS. Evidence is also provided for convergent and discriminantvalidity of ELS.

INTRODUCTION

There is a dearth of research in the field ofEmotional Labor (EL) in higher education.Emotional labor increasingly features in varietyof services, for example, hotel and leisure(Bryman, 1999), supermarkets (Rafaeli, 1989), airtravel (Hochschild, 2003), fast food (Hall, 1993),nursing home care (Lopez, 2006), academics(Ogbonna and Harris, 2004) etc. Hence, a smallnumber of cases in which it has been researched,is in the feminist literature especially pertainingto health care units and other service sectors.Further, research activities on EL are groundedin the traditional service sector (Bagilhole andGoode, 1998; Sachs and Blackmore, 1998; Bellas,1999; and Hort et al., 2001). However, recentlyresearch has also expanded to masculanistliterature (Mann, 1997; Harris, 2002; andStrongman and Wright, 2008).

For the purpose of this paper, the belief thathigher education is operating in themanagerialism paradigm is accepted (WhitePaper, 2003). This implies that B-schools in Indiaare turning out to be business houses. In thelight of this assumption, Willmott (1995) hadasserted that the student is perceived as acustomer and the degree awarded by auniversity is perceived as a passport to thecorporate world. Thus, the role of the academicsis that of a service provider who treats studentsas customers. Extensive research on serviceorganizations have emerged with the findingsthat employees should perform as a customer/

provider interface, and it is a means to gaincompetitive advantage.

The customer driven system even demandsthat teaching staff perform EL so that negativeemotions are under control, and notlet the customers feel disgruntled. Theyexpect performance at the time of theexecution of duties, thereby, adding value tothe teaching and learning activity beingexperienced by the customers (students). Theemployee�s behaviour requires emotional labour(Hochschild, 1983), where employee behaves asa front line manager not as the top management,has to either conceal or manage actual feelingsfor the benefit of a successful service delivery.Teaching staff, in higher education, are expectedto perform emotional labour in order to achievethe dual outcomes. This signifies that thegenerated outcomes are perceived as customer(Gibbs, 2001) satisfaction, and profit for themanagement.

MANAGERIALISM

Managerialism has emerged from criticalliterature (Willmott, 1995; Mok, 1997;Giroux,1999; Simkins, 2000; Meyer, 2002; O�Brien andDown, 2002) which has thrown light onchanging paradigm of education institutionwhere they are focusing on quality, efficiency,effectiveness, predictability and substitution ofhuman technology with non- human technology(Ritzer, 1993). The whole transformation ofeducation institution to service provider

*Associate Professor, Area Head, (HR/OB), 16, Knowledge Park-II, IILM Graduate School of Management, Greater Noida.


11

encompasses formal and external inspectionincluding evaluation of teaching and researchpaired with resource and financial implications.It is also called McDonalisation of educationsignifying standardization and control in higherEducation (Ritzer, 1996). It emphasizes on theideology of rationalization where the educationinstitution fosters the rationalization ofworkplace and rationalized homes (Ritzer, 1993).In the opinion of Willmott (1995), the educationinstitute believes that the students are to betreated as customer it remits the message thatthe university has become part of the corporateagenda. It has transformed the degree into acommodity in other word known as a mealticket. Further, the role of the academician is thatof a service provider who treats the student as acustomer as she (the academic) aims to receiveexcellent ratings, and thus continued tenure andresearch funding. Maaret Wager (2001) in apaper presented at a higher educationconference informs us that more and moremeasures of performance serve to control andcoerce academics. This kind of transition of rolefrom academician to service provider generatesincongruent demand within a role theoryparadigm. Inside this conceptual framework,conflict manifests as the service provider violatesthe requirement of one role while fulfilling thedemands of other (Varca, 2009). The increasingworkload on academics is more associated withincreasing administrative work, accountability,performance management, and documentationalong with increasing number of applicants. Thiskind of workload potentially take teachers awayfrom core purpose of education i.e., teaching,research and commitment to students (O�Brienand Down, 2002). Apart from the abovediscussion, the role conflict among academics isnot only arising from blurred core values ofhigher education but the change in its role.Higher education is synonymous withtrainability (Bernstein, 2000) and employability(Levidow, 2002). Given such changes, there is alikelihood of change in pedagogical relationshipof academics towards student, demanding moreempathetic relationship with students (Gaililaer,2004).

Higher education in Hong Kong hasestablished the quality assurance committee tominimize the wastage of funds allocated for

research purpose. They have establishedrigorous system for evaluating performance ofthe academician as quoted by Mok (1999). Alongwith approaches of customer service providerin higher education there are different measureshave been introduced like total qualitymanagement, reengineering, statisticalprocessing control, employee involvement andjust-in-time production (Rhoades and Smart,1996). On the other hand, it is also said thecustomer service provider approach hasreinforced corporate kind of relations amongstudents and academicians unlike the socialrelationship between them. Given the condition,it can be asserted that invasiveness of emotionallabour in service delivery (including teaching)is deeper still, for the exception of it, fuzzy, andimplicit, comes from customers (students), whowant more than pleasant platitudes andcompetent service, instead authentic caring,otherwise then see falseness of the false. Theyknow of the deceit but want to feel that they aredifferent and enjoy the empathy of the teacher(Constanti and Gibbs, 2004).Thus theperformance of emotional labour plays asignificant role in the transformed system ofhigher education.

LITERATURE REVIEW

None of the research paper on emotionallabour has cited the work of Allport (1940) whichconsisted emotional flavour. Howsoever, if wetrace EI origin, Allport had mentionedcontinuous demonstration of empathy andunconditional positive dispositions to elicitpositive emotions as a critical part of personalitytraits. This distinguishes leaders from non-leaders. Goffman (1959) was among the firstresearchers to observe that behavior is guidedby certain socially desirable emotions and thesesocially desirable emotions are set up as norms.Across a number of occupational roles, the actof dispositions of socially desirable emotionsbecomes a basis of EL (Ashforth and Humphrey,1993). Emotional labour is conceptualized asimpression management of service employees(Ashforth and Humphrey, 1993; Hochschild,2003), to make them appropriate or consistentwith a situation, role, or an expectedorganizational behavior (Mumby and Putnam,1992). This labor requires effort, planning, and

Development of Emotional Labour Scale in Indian Context


control to express organizationally desiredemotion during interpersonal transactions(Morris and Feldman, 1996: 987). An employeeworking in any service sector should adhere tonorms for appropriate behavior or expectationsthat are established by organizations. Such kindof expressions of emotions is found acrossoccupational roles and at the customer-industryinterface (Ashforth and Humphrey, 1993). Thisforms the basis for EL. Hochschild�s (1983) haspioneered in this field and found that employeesundergo through dissonance either by simplyaltering their displayed feelings (surface acting)or by internalizing the appropriate feelingswithin themselves (deep acting). Deep actinginvolves alignment of desired emotions and one�strue feelings (Grandey, 1998). One not onlyattempts to control physical display butendeavour to modify internal feelings(Brotheridge and Grandey, 2002). Surface actingis superficial and in sincere wherein the physicaldisplay doesn�t match with internal feelings(Ashforth and Humphery, 1993 and Zapf, 2002).This does not signify that EL always leads toemotional dissonance (Zerbe, 2000).

The first unidimensional measure ofemotional labour was used by Wharton (1993).The construct was based on frequency ofcustomer contact. Kruml and Geddes (1998)operationalised El to be the combination ofemotional effort and emotional dissonance. Thethinker had a different set of opinion about thewhole construct. They described emotional effortto be emotional management where one controlsnegative emotion after being trained. On thecontrary emotional dissonance is associated withemotional detachment from customers. Whileperforming EL, employees regulate theiremotional display in an attempt to meetorganizationally-based expectations specific totheir roles. Ashforth and Humphrey (1993)conceptualized EI to be the act of displayingappropriate emotions (i.e., confirming withdisplay rules). They emphasized it as the act ofbehavior rather than the internal state or processdriving such behavior. Such expectationsdetermine not only the content and range ofemotions to be displayed (Hochschild, 1983), butalso the frequency, intensity and the durationthat such emotions should be exhibited (Morrisand Feldman, 1996).

In expressing the desired emotions,employees may experience emotional dissonanceand emotional harmony. The former occurswhen feelings differ from expressed emotionsowing to incompatibility betweenorganizationally based expectations and actualfeelings held by the workers (Morris andFeldman, 1996 and Zerbe, 2000). Indeed, bothAshforth and Humphrey (1993), and Morris andFeldman (1997) argued that workers maygenuinely feel the emotions displayed. In suchcases, EL has more to do with managing theappropriate emotions rather than faking (i.e.,expressing unfelt emotions) or by creatingillusion through (Brotheridge and Grandey, 2002)the appropriate feelings within themselves (deepacting).

Hochschild�s (1983) study and other morerecent research show that EL can affect the well-being and performance of workers in a cross-section of occupations such as nurses (Smith,1992), hospital workers (Wharton, 1993), debtcollectors (Sutton, 1991), waiters and waitresses(Adelmann, 1995), cashiers (Rafaeli, 1989; Rafaeliand Sutton, 1987; and Tolich, 1993) and Disneyemployees (Van Maanen and Kunda, 1989). Morerecent conceptual work suggests that EL shouldbe operationalized as a multi-dimensionalconstruct that could have differential impact onemployee outcomes. This is well described inGrandey�s (1998) model, as well as the four-facetmodel of Morris and Feldman (1996).

Despite these recent theoretical advances, fewattempts have been made to develop apsychometrically rigorous multidimensionalmeasure of EL. Wharton (1993) used a three-dimensional construct of EL based on thefrequency of customer contact. Best et al. (1998)measured employee perceptions of therequirements to express positive emotions andsuppress negative emotions as part of one�s workrole. More recently, Kruml and Geddes (1998)operationalized EL as a combination of emotionaleffort and emotional dissonance. They foundthat emotional effort was associated with greatertraining in emotional management, lessexperience in working with the public, andcustomers showing negative emotions.Emotional dissonance was associated withemotional detachment from customers,

13

customers showing negative emotions, and littlelatitude in emotions that can be displayed.

Given the paucity of studies that havemeasured EL as a multifaceted construct, thepurpose of the present study is to develop andvalidate such an EL measure. The study hasdrawn conceptual understandings from thework of Hochschild (1983) and Morris andFeldman (1996). The author measures surfaceand deep acting as two separate dimensions. Thestudy also measures emotion-related rolerequirements, specifically, the duration ofinteractions, frequency, intensity and a varietyof emotional display. These are expected to fostera perceived need for effort (i.e., surface and deepacting). It is important to distinguish betweensurface and deep acting. More recently however,Zapf (2002) has used action theory to describe athird way of performing EL known as automaticregulation. He asserted that the regulation ofemotion could be either automatic or controlled.Automatic regulation is the automatic display ofan organizationally desired emotion derivingfrom an emotion that is spontaneously felt. Thiswas later on confirmed by Diefendorff, Croyle,et. al., (2005) as naturally felt emotions. Tounderstand the multifaceted nature of EL, theauthor has done this study.

METHODOLOGY

The Study: The paper is an attempt to studyfactors that support four facts of emotionallabour by developing an emotional labour scalein Indian context.

The Sample: The participants composed of140 academicians ranging from AssistantProfessors to Professors. The data was collectedfrom different private institutions of Orissa. Datacollection took place in the year 2008 over a periodof three months. It was done in two phases. Thefirst phase was a pilot study which wasconducted in the state of Orissa. Afterconfirming the multi-dimensional nature ofEmotional Labor Scale (ELS) and the four factorsconstruct, a second phase of data collection wasdone. In the second phase, targeted respondentsbelonged to private MBA institutions of India.The responses from academicians holding fulltime positions were solicited. In the first phase,the survey found that in most private institutes,

the positions remain unfulfilled. So, theresponses were found to be less as compared tothe second phase of data collection of survey.The second and the final phase of data collectionconsist of 491 usable surveys for an 86 percentoverall response rate. A total of 385 men and 106women faculties responded, while the averageage was approximately 36 years (M = 35.8, SD =8). Respondents reported an average of roughlyfive years of tenure in their current positions (M= 5.45, SD = 7.90). On an average, the workloadcame to be nine (M = 8.56, SD = 8). AssistantProfessors (N = 330) made up the largest surveygroup for the present study, followed byAssociate Professors (N = 98) and Professors (N= 63). Finally, few respondents were holdingPh.D. degrees (29%).

Tools for Data Collection: Emotional labourscale was used for purpose of data collection.All the measurement items were adopted fromthe existing scale. Based on a review of theliterature on each construct and the existingscales, a list of 21 items were prepared formeasuring constructs. For adopting and refining,the measures in the study were tested in the firstphase of survey, synonymously known as pilotstudy. Scale indicators for face validity providedcomments were checked from experts in the fieldof management and belonging to premier B-schools of India. After the inputs given in thepilot study, it was possible to adapt the scalesfor EL from a six-factor model of Morris andFeldman (1996) and Zapf (2002) consisting of 21items. The scales for EL consisted of facets likedeep acting, surface acting, and automaticregulation, variety of display of emotions,frequency and intensity and duration ofemotional expression.

Tools for Data Analysis: Exploratory factoranalysis using principal factor extraction withvarimax rotation was used for purpose of dataanalysis.

RESULTS

Development of Emotional Labor Scale (ELS)

Existing theory and empirical research (Morrisand Feldman, 1996 and 1997; and Zapf, 2002)served as the basis for generating a pool of 21items for ELS. The overall aim was to construct



the ELS so that: (a) the items were simple (i.e.,reflecting a single construct) and relativelyneutral in wording; and (b) it was fairly brief,thus, reducing the respondent burden wasselected for the study. This initial pool of itemswas revised based on feedback from facultymembers, then pre-tested using a conveniencesample of faculty at universities located in Orissa(N = 97). The ELS employed a 5-point Likert scalewith the following anchors: never (1), rarely (2),sometimes (3), often (4) and always (5). Basedon an analysis of the results of this pre-test,several items having low levels of variance andhigh levels of skewness and kurtosis wereeliminated.

The purpose of phase 1 was to further refinethe ELS so that only the items that clearlyrepresented the construct under considerationwere selected. The 21-items ELS wasadministered to a convenience sample of 97faculty enrolled in various graduate levelbusiness classes at a university located in Orissa.Participants included 61 men and 36 women.They were employed on a full-time basis coveringall levels: Lecturers (N = 29), Senior Lecturers(N = 25), Assistant Professors (N = 20), AssociateProfessors (N = 15) and Professors (N = 8). Theywere, on average, 35 years old (SD = 4.92) witha mean of 5 years work experience (SD = 4.32).

Factor Structure: An Exploratory FactorAnalysis (EFA) using principal factors extractionwith varimax rotation as elicited in Table 1 wasperformed on the items from all the scalesdeveloped for this study (display, automaticregulation, deep and surface) as a means ofexamining the factor structure of ELS. EFAextracted four factors (all with Eigen valuesgreater than 1) which accounted for a total of80% variance. The factor that accounted for thelargest amount of variance (32%) was labeledsurface acting, given that it contained all theitems for surface acting. Consistent with otherscale development studies (e.g., Glover et al.,1994), items with item-total correlations fallingbelow 0.40 and cross-factor loadings above 0.20were excluded. Thus, from 21 it reduced to 12items: three items explaining automaticregulation, three items for deep acting, threeitems for surface acting and three for display ofemotions. The validity was measured through

principal component analysis. Cronbach Alphafor all the measures of scale was above 0.75.

Internal Reliability: The values for internalreliability for each of the subscales and theirrespective means, standard deviations and inter-correlations are presented in Table 2. For themost part, the item-total correlations achievedwere at 0.70 or greater and the subscalesdemonstrated adequate levels of internalconsistency (Cronbach�s á) values ranged from0.68-0.89). There were items which displayedlevels of internal consistency below 0.40 whichwere discarded. In order to validate the structurehere, the author has used AMOS 3.6. It hasemployed maximum likelihood estimationprocedures to conduct confirmatory factoranalysis to determine the fit of the measurementmodel to the data. It has also sought to find outthe uni-dimensional nature of each facet byestimating discriminant and convergent validityof ELS. Several fit indices were used toseparately evaluate and compare across CFAmodels. The ÷2, goodness of fit, adjustedgoodness of fit and Root Mean Square Error ofApproximation (RMSEA) provided informationon the overall fit of the data to each model. Threecomparative indices were used: ÷2 differencetest, the Tucker-Lewis Index (TLI) and theParsimonious Normed-Fit Index (PNFI). BothTLI and PNFI indicate the decline in fit of a givenmodel relative to the baseline.

In particular, we compared the fit of threemodels including: (1) the four-factor model; (2)seven-factor model; and (3) independence model(null model). The items for surface acting, deepacting, automatic display and variety in displaywere allowed to load onto respective factors inthe four-factor model. Items like, the duration,intensity and variety were allowed to load ontoone latent composite factor. In seven-factormodels, all the dimensions were allowed to loadonto their respective factors. In theindependence model, all paths were constrainedto equal zero. This model was used as a meansfor determining the improvement of the fitachieved by the four-factor and seven-factormodels. As indicated in Table 3, the four-factormodel has achieved an acceptable fit with thedata as evidenced by its non-significant ÷ 2 value(÷ 2 = 80.64 [130], p = 0.25). The values obtained

15

for the goodness of fit index, the adjustedgoodness of fit index, and the TLI were all abovethe 0.90 level, considered to be an acceptable levelof fit (Bentler and Bonett, 1980) RMSEA is addingto goodness of fit for four-factor model as it isless than 0.05 and is considered to represent agood fit model (Browne and Cudeck, 1993, ascited in Arbuckle, 1997). It is also evident thatthe goodness of fit is proved more with four-factor model with higher degree of freedom (130)compared to seven-factor model with lowerdegree of freedom (89). Besides that the four-factor model is more parsimonious and superiorthan the seven-factor model.

Convergent and Discriminant Validity: Inorder to establish the convergent validity of ELS,it is necessary to demonstrate its correlation withscales which measure the same constructs orwith scales that one would expect to be associatedwith it (Nunnally and Bernstein, 1994).

Discriminant validity is established by thepresence of non-significant or low correlationswith scales that one would not expect to beassociated with the subscales of ELS as a meansof demonstrating that the ELS measuressomething different from existing methods(Nunnally and Bernstein, 1994, p. 93). Itscorrelations with existing scales which measurerelated constructs should not be extremely high.Given the preceding discussion, respondentscompleted several additional measures in thisstudy. Their intercorrelations and coefficientvalues are presented in Table 4.

CONCLUSION

The objective of the study was to develop andvalidate an EL scale. It provided evidence of thereliability and convergent and discriminantvalidity of the ELS. The subscales demonstratedan adequate degree of internal consistency asindicated by Cronbach�s á. Additionally, aConfirmatory Factor Analysis (CFA) indicatedthat items loaded only onto their respectivelatent variables, thus, demonstrating theunidimensionality of each factor. Respondentsappeared to be able to distinguish between thevarious role characteristics (i.e., variety ofemotional display, surface acting, deep actingand automatic regulation of emotions). But theresponse was too poor towards three factors like

intensity, frequency and duration. Reason canbe inadvertently attributed to the difficulty inquantifying the emotions on the part ofacademicians. The variety in emotions, durationand intensity seem to be of unitary constructwhich is in conformity with Morris and Feldmanfindings (1996 and 1997). Further, theacademicians did not respond distinctively tothese dimensions as they may hold globalimpressions towards the emotional rolerequirements. This led to the development offour-factor ELS instead of seven-factor ELS.Morris and Feldman (1996) study hasconcentrated more on the controlled forms ofemotional regulation normally leveled as surfaceand deep acting. However, emotional regulationas per Zapf (2002) consists of both the dimensionscalled automatic and controlled processes bywhich individual influence different dimensionsof emotions. Nonetheless, the study differs fromthe past studies in explaining the construct bynot only including the internal mechanism ofemotional regulation but also physical displayin forms of variety of emotions. The low tomoderate correlations between the ELS subscalesand other scales demonstrated both itsrelationships with associated scales and its abilityto be adequately distinguished from other scales.

IMPLICATIONS OF STUDY

First of all, the multifaceted construct of ELhas come out to be true. Secondly, compared toMorris and Feldman findings (1996 and 1997),this study is remarkably different in terms ofnature of EL and number of facets mostapplicable in the Indian context. EL performedis more contextual and internally dependent.There is a possibility of emotional deviance whichsuggest a difference between displayed emotionsand desired external expectations whenemotional regulations are of controlled forms.Whereas the natural felt emotions in other wordknown as automatic regulation may not sufferfrom emotional deviance since it is anunconscious strategy. This further signifies thatthe comparative study between the impactcreated by automatic form of emotionalregulation and controlled form of regulation ondependent variable can be examined. Futurestudies may investigate the relationship betweenperformance of emotional labour and the role



conflict arising due to the paradigm shift ofeducation towards managerialism where theexpectations of organizations and customersdiffer. Given the condition of high stress andburnout due to performance of emotional labourdoes it invariably influence teaching effectivenessoptimistically? Does preference for automaticand controlled regulation differ on the basis ofindividual�s personality? Is it context dependent?

Mentoring responsibilities have becomeintegral part of academic system which facilitatesacademic excellence. Does it involve performanceof emotional labour to make mentoringprogrammes more effective? Does it invariablyinvolve the regulation of negative emotions inacademic context? Is there any differencebetween performance of emotional labour inacademics and those of other service sectors?Further, the implications can be stated as �facetsof EL can have different meaning in variousindustrial sectors�. This further indicates that thenature may vary between service and non-servicesectors. The edifice of future research can be builton the understanding of this paper. Themultifaceted nature of EL can be furtherexplored with new dimensions in variousindustrial sectors. The facets can have same ordifferent implications in various sectors. ELSfacilitate the further research for understandingthe implications of emotional management as anintervention strategy. It can be possibly used tounderstand the linkage between performance ofEL and operating costs and organizationalperformance.

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Table 1: Factor Analysis Results

Item Items Surface Deep Display of AutomaticNo Acting Acting Emotions regulation

V6 I often have to suppress my emotions at work 0.99 - - -

V11 I make an effort to actually feel theemotions that I need to display. 0.99 - - -

V12 I try to experience emotionsthat I must show. 0.62 - - -

V2 I feel emotionally involved in my job. - 0.86 - -

V3 I experience emotions on my job, suchas anger and excitement. - 0.83 - -

V4 Sometimes the emotions that I experienceat work carry over home. - 0.84 - -

V1 I unconsciously show desired emotionsas expected by others. - - 0.91 -

V5 I display authentic emotions whichare pleasant to others. - - 0.92 -

V14 I display emotions that are spontaneously felt. - - 0.93 -

V7 I hide my true feelings when situation demands - - - 0.84

V10 I pretend to have emotions that I really don�t have. - - - 0.85

V13 I resist expressing my genuine feelings. - - - 0.88

Note: Extraction method: Principle Component Analysis.Rotation Method: Varimax with Kaiser Normalization.Rotation converged in 9 iterations.

Table 1: Results of Exploratory Factor Analysis (N = 97)

Table 2: Mean, Standard Deviation, and Cronbach a of the Variables (N=491)

Variable Mean Standard No.of CronbachDeviation Items a

Display 7.57 .86 3 .76

Automatic regulation 10.42 1.01 3 .67

Surface 7.57 1.23 3 .86

Deep 9.84 .89 3 .89

Table 3: Goodness- of �fit indices for the proposed six factor model, a four factor and null model

c2 df p PNFI GFI AGFI TLI RMSEA c2 difference

7-factor model 175 89 .15 .69 .81 .87 .91 .20 1,464.67

4-factor model 80.64 130 .25 .78 .96 .93 .95 .01 1,650.15

Null model 1783.10 167 .00 .38 .25 .01 .29

N= 491, PNFI=Parsimonious normed-fir index, GFI=goodness-of-fit index, AFGI=adjusted-goodness-of-fit-index,TLI= Tucker- Lewis Index, RMSEA= root mean square error df approximation. These are the results of the c2difference tests for the six factor and four factor model are as follows: c2 difference= 185.48, p<.001

19

Table 4: Intercorrelations Between Factors of ELS (N=491)

Variable Display Automatic Display Surface Deep

Display - .286** -.238* .087

Automatic Display .286** - .335** .434**

Surface -.238* .335** - .375**

Deep .087 .434** .375** -

Note: **p<0.01 Level and *p<0.05

Table 5: Intercorrelations between Variables (N=491)

Variable 1 2 3 4

Display 1 .286** -.238* .087

Automatic Display .286** 1 .335** .434**

Surface -.238* .335** 1 .375**

Deep .087 .434** .375** 1

Note: **p< .001; *p< .01



IMPACT OF OCCUPATIONAL ROLE STRESS IN STRESSMANAGEMENT AMONGST PUBLIC AND PRIVATE SECTOREXECUTIVES

Ruchi Singh* and Anjali Srivastava**

Stress management is based on the idea that stress is not a direct response to a stressor. Peoplesresources and their ability to cope, mediate the stress response and are amenable to change,affects control of stress. In today�s scenario we can observe more and more people having rolestress. The increasing competition, bureaucracy micro task specialization work setting andtechnological innovation tends to generate a feeling of powerlessness and helplessness. Theinvestigators have attempted to study the impact of role stress on high and low stress managementamongst public and private sector executives. For this purpose a sample of 200 high stressmanagement male executive and 200 low stress management male executive (N = 400) out ofwhich 100 executive from public sector and 100 executives from private sector were selectedfrom Lucknow by administering Singh & Srivastava (1994) Stress Management Scale. Theoccupational role stress scale developed by Pareek (1983) was administered to the total sample.It was hypothesized that there would be a significant relationship between role stress and stressmanagement amongst public and private sector executives. Further more there would be asignificant difference between the role stress mean of public and private sector executives thatare private sector executive will report higher role stress on subscale in comparison to theircounter parts. The result supported these hypothesized relationship and are discussed at lengthin this paper.

INTRODUCTION

Stress is the non-specific response of the bodyto any demand (Selye, 1956). It does not matterwhether or not the stress is caused by pleasantor unpleasant things. Stress is the automatic statethat results when the body is told to makechanges in order to adapt to any demand.Managing stress successfully involves more thanrelying on the automatic symptom-reducingreactions to stress, as helpful as these may be.Managing stress means taking change, directingand controlling our response to stressors, therebymodifying the overall stress. There are manyways to accomplish this goal, but most of themfall under two major categories: the first one is�modifying our environment� and the secondone is �altering ourselves� in some way.

In today�s scenario we can observe more andmore people having role stress. The increasingcompetition, bureaucracy micro taskspecialization, greater urbanization, work setting

and technological innovation tends to generatea feeling of powerlessness, meaninglessness,normlessness and helplessness. Kahn et al. (1964)were the earliest to draw attention toorganizational stress in general and role stressin particular. Researches have focused theirattention on the causal factors of stress, stressmanifestations, moderators of stress strainrelationship, types of stresses experienced bydiverse work populations and various copingstrategies/relaxation techniques adopted byorganizational entities to cope with stress.

Pareek (1994) has defined role as a set offunctions, which an individual performs inresponse to the expectations of others and hisown expectations about the role. There are tworole systems: role space and role set. Both have abuilt-in potential for conflict which is called rolestress. The role space system is the system ofvarious roles played by the person. Karasek (1990)is one of the most notable contributor to the fieldof occupational stress, He says that job stress

*Lecturer, Department of Management Studies, National P.G. College, Lucknow (U.P.)

** Professor, Department of Psychology, A.P.S.


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occurs because the �demands� of employmentexceed the �controls� of the individual needed tointeract with those demands. Blumenthol (1995)demonstrated that the consequences of job strainare more severe for women than for men.Williams (1997) demonstrated that certainpsychosocial factors known to predict increasedrisk of cardiovascular disease are higher amongwomen who report higher levels of job strain.Kothari and Kothari (1999) studied role stressamong professionals doctors and engineers. Thefinding revealed that the doctors reportedsignificantly higher role stress scores in measuresof inter distance, role ambiguity, role expectationsconflicts, resource inadequacy, role erosion androle overload.

Engineers reported significantly higher rolestress, scores than the doctors in measures of selfrole distance and role isolation. Empirical studiesthat compare different professions in terms ofrole stress reveal that individuals in differentprofessions experience different types of rolestress in varying degrees (Caplan et.al., 1975 andMoerisa Koch, 1979). Barkat and Parveen (1999)studied role stress among women bankmanagers and university teachers and foundsignificant differences between the two groups.Role stress was experienced more by bankmanagers and less by university teachers.

Studies have revealed that the impact of stresson individuals has subjective, cognitive,physiological, behavioural and health facets toit. Therefore, the aim of the present study wasto see the impact of role stress in stressmanagement amongst public and private sectorexecutives. The hypotheses formulated for thepresent study were:

H1: There would be significant negativerelationship between role stress and stressmanagement anong public and private sectorexecutives, i.e., high role stress experiencedexecutives would be low on stress managementwhereas, low role stress experienced executiveswould be high on stress management.

H2: There would be a significant differencebetween the role stress mean of public andprivate sector executives i.e., private sectorexecutives would report significantly higher rolestress scores in comparison to their counterpart.

METHODOLOGY

The Study: The study tried to access therelationship between role stress amongst publicand private sector executives.

The Sample: The final study was conductedon 200 high stress management male executivesand 200 low stress management male executives(N = 400) out of which 100 executives were frompublic sector and 100 from private sectors in eachgroup. The selection of the sample waspurposive. They were matched on age, sex andeducational status. The mean age of the subjectswas 41.2 years. In order to ensure homogeneitywith regard to socio cultural background theinvestigator collected data on the maleexecutives in the public and private sectorssituated in Lucknow city of Uttar Pradesh.

Tools for Data Collection: The stressmanagement scale developed by Singh andSrivastava (1994) was used to assess stressmanagement level of the employees. It consistsof 30 positive and negative items related to stressmanagement. The response are to be given on afive point rating scale ranging from never, rarely,sometimes, often and almost always is the lowestscore given to an item 1 and highest score is 5.Organizational Role Stress Scale (ORS): Pareek(1983) developed and standardized theorganization role stress scale to measure rolestress in organization. The ORS scale measures10 type of role stress viz self role distance (SRD),inter-role distance (IRD), role isolation (RI), roleambiguity (RA), role expectations conflict (REC),resource inadequacy (Rin), personal inadequacy(Pin), role stagnation (RS), role erosion (RE) androle overload (RO). The ORS scale consists of 50items with a five point scale ranging from D-never or rarely to 4 very frequently or always.Thus, the total scores for each role stress rangesfrom 0 to 20.

Tools for Data Analysis: First and foremostSingh and Srivastava (1994) stress managementscale was administered to about 600 public andprivate sector executives to ascertain high stressmanagement and low stress managementexecutives. Scoring was done on the basis of theirscores. High stress management executives (100public and 109 private) and low stressmanagement executives (100 public and 100

Impact of Occupational Role Stress in Stress Management ...


private) were treated as the final sample for thestudy (N = 400). Occupational role stress scalewas administered individually on the 200 highstress management executives (100 public and100 private sector) and 200 low stressmanagement executives (100 public and 100private sector) one at a line in organizationalsetting. The data was scored using theappropriate scoring procedures and latersubjected to systematic analysis.

The analysis of the data was done at threelevels. Firstly, means and S.D. values werecomputed. Secondly, significance of differencebetween means (t-ratio) were computed betweenhigh stress management executive and low stressmanagement executives and public and privatesector executives for role stress. Thirdly,coefficients of correlations were computed inorder to see the relationships among the rolestress and stress management.


The means and SD scores of occupational rolestress sub scales are presented in Table-1 for lowand high stress management/public and privatesector executives.

Table-1 shows that on inter role distance (IRD)the mean scores of high stress managementprivate sector executive was highest than theother sub scales (M = 10.25) whereas for lowstress management public sector executives waslowest. (M = 8.10) than the other sub scales meanscores. The low stress management public andprivate sector executive mean scores were greaterthan their counterparts on IRD. On rolestagnation (RS) the mean values of private sectorexecutives both high and low stress managementwere greater than public sector executives. Thelow stress management public and private sectorexecutives mean scores were found to be higherthan high stress management executives.

On role expectation conflict (REC) the highstress management public sector executivesmean score was found to be lowest than theother types of stress irrespective of any meanscore i.e. 5.38. The high stress managementexecutives mean scores (public and privatesector) were found to be lesser in comparison

to low stress management executives (publicand private sector). The mean score of roleerosion among low stress management privateexecutive was found to be lowest than othertypes of role stress (M = 9.70) for that groupbut otherwise it was highest mean score thanothers i.e., high stress management public andprivate sector and low stress managementpublic sector for role erosion.

For low stress management public sectorexecutives the mean score i.e. 10.50 was foundto be highest than the other types of role stressfor this group. Low stress management privatesector executives mean score was found to behighest i.e. 11.82 than public sector executivesand high stress management public and privatesector executives. Similarly for resourceinadequacy the same pattern of mean scoresfollowed i.e. lowest for public high stressmanagement executives and highest for privatelow stress management executives. For personalinadequacy, the low stress management privatesector executives mean score was found to behighest than the other types of role stress (M =12.25). It was highest score amongst all the meanscores in the table. The pattern was similar asfor resource inadequacy.

On self role distance (SRD) the mean scorefor high stress management private executiveswas found to be lowest than other types of rolestress for that 10 group (M = 6.86). It wasfollowed by private executives of the same groupi.e. 7.83 and low stress management publicexecutives (M = 8.46) and lastly private sectorexecutives (M = 10.80) of that groups. Roleambiguity mean score followed the similarpattern as SRD. Lower mean score was 7.93.High SM private executives followed by publicsector executives of that group i.e. 8.32 whereasfor low stress management public sectorexecutives (M = 10.24) and private sector of thatgroup (M = l1.45).

On role isolation the mean score of publichigh stress management executives was highestthan the other role stress types in that group(M = 8.41). For the private sector executives (M= 8.32) which is more or less similar. The resultsshow that as such no difference is there bypublic or private. For low stress management

23

public and private executives there wasdifference of 1.46. The low stress managementprivate sector executives experienced more roleisolation stress.

By looking at Table-1 the total mean score wasgreatest in low stress management private sectorexecutives (M = 112.3) followed by publicexecutives (M = 92.25) and then high stressmanagement private executives M = 88.21 andleast for public sector executives of that groupi.e. 68.32. Significance of difference betweenmeans t-test was also applied between the privateand public sector executives to see significantdifferences. The t-ratio for types of role stressand total are presented in Table-2.

By looking at Table-2 it is evident that the highSM Mean scores of public and private sector forIRD, RS REC, RE, RO, Rin have been found� tobe highly significant p<.01 level and for Rin tratio is significant at .05 level. Apart from thesefor SRD, RA and RI mean significant differenceshave not been found, whereas for the low SMmeans scores of public and private sectors onlyfor Rin mean difference is not found significantwhereas for all the other eight sub scales t-ratiosshow high significant differences and for roleerosion p<.05 level. However the total rolestress t ratios reveal high significance level (SeeTable-2).

The results supported the hypothesizedrelationships. It was hypothesized that therewould be significant negative relationshipbetween role stress and stress management. Thecoefficient of correlation (r) was found to besignificant at .01 level (-.34). The results showedthat the total means scores on role stress wasgreatest in low stress management private sectorexecutive (M = 112.3) than high stressmanagement private sector executives (M =88.21). It was found that low stress managementpublic sector executives mean score was greater(M = 92.25) than high stress management publicsector executives (68.32). However, private sectorexecutives reported higher role stress scores inall the subscales of role stress in comparison totheir counterparts.

The findings can be interpreted in the lightof number of evidences. It is seen that the privatesector executives stay in a pressure of job

insecurity. They have to play multiple roleacceptance in family and work place. The natureof work and high quality demand of work isexpected from them. They have to spend moretime for their work than the public sectorexecutives. Such overload cause many conflictingsituation of stresses and strains. Studies haverevealed that occupational stress is affected bysubjects to job satisfaction. If a subject is satisfiedwith his/her job he will perceive comparativelyless job stress. Job satisfaction is an importantvariable which needs to be studied in furtherresearch because many studies have beenconducted to see a relationship between stressand job satisfaction and performance (Dunnette,1973; Pritchand, 1973; Hall, 1969).

Kirkcaldy, Cooper and Brown (2005) exploredthe role of coping in the stress strainrelationships. Occupational role stress was takeninto account in the present study but worksatisfaction and dissatisfaction were not taken.Attention should be paid on these variables asthey are important contributors of stress. Gupta(2007) stated that unreasonably high expectationsare roof cause of mental stress at workplace. Inaccount statement by Settee (2007) it is believedthat frequent change or sudden loss of job, socialproblems, high expectations issues withcolleagues and long working hours lead to bothphysical and mental exertion. A study wasconducted by Kumar (1989) to study role stress,self efficacy role satisfaction among public sectorexecutives.

Kapur (1969) Surti (1982) Surti and Surupria(1981) on different populations and have tracedthe dominent role stresses. Stress is relatively anabstract construct that cannot be assesseddirectly. It can only be understood by assessinga complex system of variables and how thesevariables relate to one another over time.

CONCLUSION

Managing stress levels in the workplace hasbecome a key business skill as the pressure toperform continues to increase. Executives needa range of skills to be able to maximizeperformance in a sustainable way and executivesneed to understand stress prevention and stressmanagement techniques to cope effectively withstressed executives.



References

Blumenthal, J.A., Cox, D.R. Walsh, M.A. Kuhn, C, Williams,

R.B., & Williams, R.S. (1987). Effect of Exercise on Type aBehavior Pattern. Psychosomatic medicine, 49, 209.

Dhar, U., Kothari, A., Dhar Santosh, Mishra P. Jian (1999). Human

Behaviour and Management Practices in 21st Century. Shiv

Shakti Publication, New Delhi, Indore

Khan, R.L. Wolfe, D.M. Qunn, R.P. Snock, J.D. and Rosenthal,

R.A. (1964). Organizational Stress: Studies in Role Conflict

and Ambiguity. New York: Wiley.

Kapur, R. (1969). Role conflict Among Employed Housewives.

IJIR. 5(1), 39-69.

Karasek, R., & Theorell, T. (1990). Healthy Work: Stress, Productivity

and the Reconstruction of Working Life. New York: Basic

Books.

Kirkcaldy, B.D. Copper, C.L. and Brown, J.M. (2005). The Role of

Coping in the Stress-Strain Relationship Among Senior

Police Officer. International Journal Of Stress Management,

2, 69-78.

Kumar, S. (1989). A Study of Role Stress, Role Satisfaction and Role

Efficacy among Public Sector Executive. Ph.D. Thesis, M.D.

University, Rohtak.

Pareek, U. (1983). Role Stress Scale. Ors scale booklet, Answer Sheet

and Manual. Ahmedabad, Navin Publication.

Selye, H. (1956). The Stress of Life. New York: McGraw Hill.

Singh, P. and Srivastava, A. (1994). Manual of Stress Management

Scale Manovaigyanik Parikchan Sansthan Varanasi.

Surti, K. and Sarupria, D. (1981). Psychological Factors Affecting

Women Entrepreneurs some Findings. Paper Presented at

the Second International Conference of Women

Entrepreneurs: New Delhi.

Surti, K. (1982). Some Psychological Correlates of Role Stress and Coping

Styles in Working Women. Ph.D. Thesis, Gujarat University,

Ahmedabad.

25

Table-1: Showing Means and S.D. of different Groups on Occupational Role Stress Subscalesand Total Role Stress

S. Sub Scales High SM Low SM

No. Public Private Public Private

M SD M SD M SD M SD

1. Inter Role Distance 6.59 2.56 10.25 3.21 8.10 2.24 12.10 2.35

2. Role Stagnation 7.74 4.22 10.23 2.78 9.34 2.20 11.02 4.32

3. Role Expectations Conflict 5.38 2.12 8.10 3.20 9.36 2.10 12.20 2.52

4. Role erosion 7.63 2.60 8.75 2.90 8.72 2.84 9.70 3.48

5. Role overload 8.35 3.20 9.30 3.10 10.50 3.02 11.82 4.20

6. Resource Inadequacy 8.00 2.18 10.14 4.00 10.38 2.88 11.50 4.00

7. Personal Inadequacy 7.66 2.10 8.33 2.31 8.35 3.02 12.25 3.29

8. Self role distance 7.83 2.12 6.86 2.00 8.46 3.72 10.80 2.86

9. Role ambiguity 8.32 3.12 7.93 1.98 10.24 2.10 11.45 4.21

10. Role isolation 8.41 2.79 8.32 2.12 8.80 3.21 10.26 3.90

Total Role Stress 68.32 27.01 88.21 27.60 92.25 27.51 112.3 62.64

Tuble-2: Showing t Values between Public and Private high SM and low SM Executives

S.No. Sub Scales High SM Public / Low SM Public /Type of Role Stress Private Sector Private Sector

1. Inter Role Distance 9.15** 12.90**

2. Role Stagnation 4.93** 3.64**

3. Role Expectation Conflict 7.10** 9.16**

4. Role erosion 2.82** 2.22*

5. Role Overload 2.20* 2.64**

6. Resource inadequac y 4.70** 1.15

7. Personal Inadequacy 2.23* 9.06**

8. Self role distance 1.08 5.20**

9. Role ambiguity 1.14 2.68**

10. Role Isolation 0.27 2.92**

11. Total Role Stress 35.62** 88.55**



MEASURING THE SATISFACTION OF FOREIGN TOURISTS: ASTUDY IN MAHABALIPURAM AND KANCHIPURAM CITIES OFTAMILNADU

R.Satish*, G. Dileep**

This paper highlights HOLSAT Model which argues that the measurement of different attributesof tourist satisfaction can be categorized into 5 broad dimensions. It is called FIVE As, viz.attractions, activities, accessibility, accommodation, and amenity. The major strength of thismodel is that it utilizes and modifies the previous work in the areas of tourist satisfaction todevelop a credible research instrument. The present study uses this Model in the measurementof satisfaction level of tourist traveling to the Mahabalipuram and Kanchipuram region ofTamilnadu. The present study was conducted with the objectives to measure the satisfactionlevel of foreign tourists visiting Mahabalipuram and Kanchipuram; to compare the level ofsatisfaction of foreign tourists visiting these places; and to identify the determinants thatcontributes to the tourist satisfaction by employing the HOLSAT Model. Suitable Statisticaltools were applied and the study revealed key areas sought by the tourists that will be helpful forpromoting Mahabalipuram and Kanchipuram regions of Tamilnadu as the tourist�s destination.It provides relevant input for the development of Tamilnadu tourism.

*Associate Professor-MBA, SRR Engineering College, 147 NGGO Nagar Chengalpattu**Professor and Head, SRR Engineering College, Tamilnadu

INTRODUCTION

Tourism is defined as a short-term movementof people to areas some distance from theirnormal place of residence in order to indulge inpleasurable activities. It is the sum of phenomenaand relationships arising from the interactionamong tourists, business suppliers, hostgovernments, host communities, origingovernments, universities, community colleges,and non-governmental organizationsthroughout the process of attracting,transporting, hosting and managing of thetourists and other visitors (Weave and Lawton,2002). Satisfaction is a key judgment made bycustomers about products or services and canheavily influence the success of a business(Bowen and Clarke, 2002). Tourism is anexperience made up of many inter-relatedcomponents and thus tourist satisfaction with adestination can be considered a cumulativemeasure of total consumption and purchaseexperience over time (Haber and Lerner, 1998).The development, survival, success and failureof tourism ventures depend largely upon thesatisfaction of customers (Haber and Lerner,1998). The growing complexity and

competitiveness of the global marketplace makesit imperative for destinations to promote a strong,positive image as they are more likely to bechosen by tourists (Hunt, 1975; Goodrich, 1978b;Woodside and Lysonski, 1989).

In order to create and maintain a favourableimage it is important that the satisfaction levelsof tourists at a destination are monitored. Positiveexperiences can encourage repeat visitation(Kozak and Rimmington, 2000) and attractpositive word-of-mouth communication (Ross,1993; Beeho and Prentice, 1997). The spread ofword-of-mouth recommendation is consideredthe most effective means to market and promotea destination (Söderlund, 1998). Thus, ensuringthe satisfaction of tourists can increase thecompetitiveness of a destination and influencethe decision-making process of potential tourists.Furthermore, monitoring tourist satisfaction canhelp detect problems with a destination andenable action to be taken before a major crisisoccurs. It is widely agreed in the literature thatfavourable tourist perceptions are positivelyrelated to customer loyalty and patronage,which is important for the long-term economicsuccess of a destination (Akama and Kieti, 2003).


27

Destinations must be effectively managed andall individual products and services that makeup the tourism product must be considered inthe formation and marketing of an overallpositive image (Kozak and Rimmington, 2000).Tourism marketers strive to ensure the optimalpositioning of a destination in a highlycompetitive marketplace (Beerli and Martin,2004), although most destination-positioningstrategies do not take into account cross-culturaldifferences, which exist within the tourismmarket. Culture encompasses an entire set ofimplicit, widely shared values, beliefs,expectations and traditions that characterize aparticular social unit (Pizam and Jeong, 1996).The influence of national cultural characteristicson determining tourist satisfaction levels has notbeen given much consideration in the literature.However, cross-cultural studies (Pizam andSussman, 1995; Pizam and Jeong, 1996; Kozak,2001) indicate that satisfaction levels, touristbehaviour and tourist perceptions of a destinationor service business may vary according tocountries of origin.

LITERATURE REVIEW

There is much literature on different aspectsof consumer satisfaction in tourism as well as anincrease in literature on tourist satisfaction withdomestic or international holiday destinations(Pizam and Milman, 1993; Weber, 1997). Tourismis a distinct service experience and the tourismproduct is made up of many differentcomponents. When investigating overallsatisfaction with a tourist destination theindividual products and services need to beidentified and measured as levels of satisfactionwith one attribute can affect overall touristsatisfaction (Pizam et al., 1978; Kozak andRimmington, 2000).

Tourist satisfaction is critical for a destination�ssurvival and success. Overall satisfaction with atourist destination is strongly linked to intentionto return and positive word-of-mouthcommunication, as demonstrated by research byRoss (1993).This is supported by a more recentstudy by Kozak and Rimmington (2000), whichindicates that satisfied tourists are more likely torecommend the destination to friends and family.However, Kozak and Rimmington (2000) purport

that repeat business may not be as significant tothe tourism industry as it is for other businessesas many tourists look for different holidayexperiences regardless of satisfaction levels witha destination. This is supported by Moutinho(cited in Turner et al., 2001), who states thatalthough extremely dissatisfied tourists maydecide to change a destination for their holiday,satisfied tourists do not necessarily visit the sameplace again. However, these authors tend to referto tourists traveling abroad and repeat visitationmay therefore be more significant for domestictourism. Furthermore, even though the effect ofsatisfaction on repeat visitation may not beprofound for some destinations, research showsthat it does influence customer loyalty andpatronage and can therefore contribute to adestination�s economic success (Akama and Kieti,2003). The measurement of tourist satisfactiontherefore has important implications fordestination managers.

Mahabalipuram is an elegant place to watchwhich a well established sea port was during the7th and 10th centuries of the Pallava dynasty.This was the second capital of the Pallavas whoruled Kanchipuram. Formerly, mahabalipuramwas known and called as Mamallapuram. A veryrude cruel king Mahabali reined this place andin a fierce battle king Mahabali was killed by LordVishnu and the place was named after the dead,arrogant kind Mahabali. It was during the reignof King Narasimha Varman I, the nameMahabalipuram was changed. It was renamedmahabalipuram which is called till now. Therichness in mahabalipuram was not known tomany, as these pallavas did not outlet and exposetheir quality and innovative creations to the outerworld for obvious reasons. Every one can pointout the rock - cut caves; temples made from asingle rock, temples and strive of differentstructures, and bas-reliefs which are so artisticand sheer creativity. Mamallapuram is referredas an �open-air museum�. The great pallava kingsNarasimha I and Rajasimha have well preservedthese stylistic qualities that one enjoys inmahabalipuram even in the present day.Kanchipuram is famous for hand-woven silkfabrics and saris. The weavers use the highestquality silk and pure gold thread. Kanchipuramis also known as Silk City. Sankaracharya �Math�is situated at Kanchipuram.

Measuring the Satisfaction of Foreign Tourists: A Study �


Various researchers have conducted studieson the factors influencing perceived destinationimage. Scott et al. (1978) and Hunt (1975)demonstrate that distance from the destinationaffects image formation. They conclude thatdestination images are likely to be more realisticand stronger if people live close by, as they aremore likely to have visited the area and to havebeen exposed to information about thedestination. Based on this deduction, it can beassumed that domestic tourists are less likely tohave extreme ratings of satisfaction with adestination than their international counterpartsas their holiday experiences are likely tocorrespond more with their post-trip images.Destination image is also influenced by thecharacteristics of an individual, such as, age,gender, education, occupation, and social class(Beerli and Martin, 2004). An individual�spersonal characteristics and circumstancesheavily influence the perceptive processesrelated to the selection, organization andinterpretation of incoming information in orderto create an image (Beerli and Martin, 2004).Thus, individuals develop their own personalperceived images of tourist destinations .Thisemphasizes the need to take into account thepersonal characteristics and circumstances ofrespondents when measuring tourists�perceptions of a destination. Due to theassociation of destination image withsatisfaction, the methods used to measureperceived destination image are similar to thoseused to measure tourist satisfaction with adestination. Key attributes that affect destinationimage are likely to affect levels of satisfaction witha destination and it is therefore important toreview the measurements of destination imageproposed in the literature.

HOLSAT (HOLIDAY SATISFACTIONMODEL)

The HOLSAT is a model developed by Tribeand Snaith (1998). It specifically tackles the issueof traveler�s expectations which are examinedprior to the arrival at the destination as comparedto the actual level of satisfaction experiencedafter the holiday. It compares the performanceof a wide range of the holiday attributes againsta holiday-maker�s expectations as a means ofevaluating satisfaction with a particular holiday

destination or experience. This approachovercomes some of the limitations of othermodels in dealing with the concept of holidaysatisfaction. The HOLSAT differs from theprevious models while measuring satisfaction asthe relationship between the performance andthe prior expectation rather than theperformance alone (SERVPERF, Cronin andTaylor, 1914), or performance relative to the bestquality (an absolute) (SERVQUAL,Parasuraman, Zeithaml, and Berry, 1988). Thismodel argues that the measurement of differentattributes of tourist satisfaction can be categorizedinto 5 broad dimensions. It is called �FIVE As�,viz. (1) attractions (2) activities (3) accessibility(4) accommodation, and (5) amenity. The majorstrength of this Model is that it utilizes & modifiesthe previous work in the areas of touristsatisfaction to develop a credible researchinstrument. The present study uses the modelin the measurement of satisfaction level of touristtraveling to the Mahabalipuram andKanchipuram region of Tamilnadu.Mahabalipuram lies on the Coromandel Coastwhich faces the Bay of Bengal. While,Kanchipuram is one of the seven sacred citiessituated in Tamil Nadu.

OBJECTIVES OF THE STUDY

w To measure and compare the satisfaction levelof foreign tourists visiting Mahabalipuramand Kanchipuram;

w To identify the determinants that contributesto the tourist satisfaction with the helpHOLSAT Model.

HYPOTHESES

H01

: There is no significant difference betweenthe expectation scores and the actual servicerendered scores of the foreign tourists visitingMahabalipuram.

H02

: There is no significant difference betweenthe expectation scores and the actual servicerendered scores of the foreign tourists visitingKanchipuram.

RESEARCH METHODOLOGY

The Study: The present study is empirical innature and is based on the survey method. Thedata for the study was collected from primary

29

source, with the help of a standardizedquestionnaire. The study aims to investigate thesatisfaction level of the tourists from foreigncountries visiting Mahabalipuram &Kanchipuram and to identify the variables thatcontribute to the tourist satisfaction, byemploying the HOLSAT methodology. Morethan 200 questionnaires were distributed toforeign tourists visiting Mahabalipuram andKanchipuram each, but only 89 & 93 filled inquestionnaires were received respectively. Thequestionnaire schedule includes 25 key variablesspanning 5 broad dimensions of the HOLSATmodel. The Key variables were identified after athorough analysis of literature pertaining to thetourist satisfaction, expectation and perceptionswere recorded on a 5-point likert�s scale.Expectation scores were distributed from �1� verylow to �5� very high. The actual service renderedscores were distributed from �1� very dissatisfiedto�5� very satisfied.

The Tools for Data Analysis: Statistical toolssuch as Mean, Standard Deviation were used toascertain the expectations and perception of therespondents. The Paired t-test was used to testthe hypothetical relationship between thevariables.

Respondent�s Profile: The demographicprofile of the respondents is given in Table 1.Mahabalipuram: According to the age, While 12tourists fell under the group of 21 to 30 years, 34tourists belong to the group of 31-40 years , 27belongs to the group of 41 to 50 years & 16 were51 years & above. The Sample consisted of 47male & 42 female respondents. The Table alsoshows the number of visits made by the touriststo the destination. 74 tourists visited for first time,11 traveled for second time & 4 had earlier mademore than 2 visits to the destination. Media &friends were the major motivational factors forthe tourists to visit the destination. Majority oftourists comes from Central Asia region to visitthe destination.

Kanchipuram City: According to the age,While 21 tourists fell under the group of 21 to 30years, 39 tourists belong to the group of 31-40years , 22 belongs to the group of 41 to 50 years& 11 were 51 years & above. The Sampleconsisted of 52 male & 41 female respondents.

The Table also shows the number of visits madeby the tourists to the destination. 54 touristsvisited for first time, 23 traveled for second time& 16 had earlier made more than 2 visits to thedestination. Media & friends were the majormotivational factors for the tourists to visit thedestination. Majority of tourists comes fromWestern region to visit the destination.

Figure 1: Holsat Model Dimensions


Section I: As per Table 2, In the case ofMahabalipuram tourists, they were satisfied withavailability of the shopping facility,communication infrastructure, adequate safety& security facilities in the destination, destinationplan and vehicle parking. They were not satisfiedwith food quality, eating facility, climaticconditions, sufficient access to drinking waterand availability of hospital facilities. As per Table3, in the case of Kanchipuram the tourists weresatisfied with food quality, eating facility, qualityof accommodation, access to drinking water andsafety and security facilities in the destination.They were not satisfied with the availability oftourist guide, vehicle parking, climaticconditions, hospital facilities and cleanliness.

Section II: Satisfaction of Foreign Tourists:Dimensions of the HOLSAT Model

This gives more meaningful insights into thesatisfaction level for the foreign tourists visitingMahabalipuram & Kanchipuram. The 25attributes identified for the study can becategorized into 5 dimensions of the HOLSATModel. Table 4 depicts that four out of fivedimensions get negative scores and others getpositive scores in the case of Mahabalipuram and2 dimensions have negative scores, others gotpositive scores in the case of Kanchipuram asper Table 5. In another way, the tourists weresatisfied with only the �amenities�, the otherdimensions of the model do not appear to



provide satisfaction to the tourists, since theirgap scores are negative in the case ofMahabalipuram, whereas, Kanchipuram touristswere satisfied with attraction, access &accommodation of the HOLSAT Model. Theother dimensions �activities� and �amenities� didnot provide satisfaction to tourists since their gapscores are negative.

Hypothesis Testing

For testing the first null hypothesis, the datawas analysed using the paired�t� test taking thescores of the expectation and the actual servicerendered from foreign tourist visitingMahabalipuram at 0.05 level of significance. Themean score was (�) 0.0744 thus the first nullhypothesis was rejected and there exist asignificant difference between the expectationscores and the actual service rendered scores ofthe foreign tourists visiting Mahabalipuram.

Results of Paired t-test

Mean Standard Deviation t

-0.0744 0.2069 -1.7979

The second null hypothesis was tested usingthe paired�t� test taking the scores of theexpectation and the actual service rendered fromforeign tourist visiting Kanchipuram at 0.05 levelof significance. The mean score was 0.0598 andthus the second null hypothesis was acceptedand it can be conclude that there is no significantdifference between the expectation scores andthe actual service rendered scores of the foreigntourists visiting Kanchipuram.

Results of Paired t-test

Mean Standard Deviation t

0.0598 0.6010 0.4975

CONCLUSION

The perception of the foreign tourists ofMahabalipuram as a tourist centre has beenpoorer than their expectations. The reasonsincluded non-availability of well trained touristguide, non-cooperation of local people, pollutedenvironment, unfavorable climatic conditions,lack of infrastructure and super structure forproviding right information to the tourists, lack

of hospital facility, and certain other services. Theforeign tourists visiting Kanchipuram generallyhold a positive view because of better attractions,accessibility and accommodation. From thestudy can be concluded that the tourists weregenerally satisfied with the holidaycharacteristics of Kanchipuram in comparisonto Mahabalipuram. The good experiencesreported by the tourists and the significance levelof satisfaction of foreign travelers indicate thatKanchipuram has a great potential to offer totourists.

LIMITATIONS OF THE STUDY

The Major limitation of the study is the usualsample size. The results of the study surely willimprove with a larger sample with respect to theresearch setting, it is to be noted that most ofthe data was collected at a single point in time.The result may vary for different profile oftourists. The population (foreign tourist) usedin this study is a heterogeneous group thatpresumably has greater than average cognitivecapabilities. Hence, there is an obvious need toreplicate this study using the sample withcommon demographic profile to extendgeneralisability of results. While this study revealsthe level of satisfaction of foreign tourists visitingMahabalipuram & Kanchipuram cities, there areseveral areas and places which need futureresearch.

References

Akama, John S. and Damiannah Mukethe Kieti (2003). Measuring

Tourist Satisfaction with Kenya�s Wildlife Safari: A Case

Study of Tsavo West National Park. Tourism Management,

24, 73-81.

Beerli, Asuncion and Josefa D. Martin (2004). Tourists�

Characteristics and the Perceived Image of Tourist

Destinations: A Quantitative Analysis-A Case Study ofLanzarote, Spain. Tourism Management, 25, 623-636.

Bowen, David and Jackie Clarke (2002). Reflections on TouristSatisfaction Research: Past, Present and Future. Journal of

Vacation Marketing, 8(4), 297-308.

Cronin, T.J. and S.A. Taylor (1992). Measuring Service Quality: AReexamination and Extension. Journal of Marketing, 56(3),

55-68.

Goodrich, Jonathan N. (1978b). A New Approach to Image

Analysis through Multi-dimensional Scaling. Journal of

Travel Research, 16(3), 3-7.

Haber, Sigal and Miri Lerner (1998). Correlates of Tourist

Satisfaction. Annals of Tourism Research, 25(4), 197-201.

Hunt, J. D. (1975). Image as a Factor in Tourism Development.

Journal of Travel Research, 13, 1-7.

31

ANNEXURE

Table 1: Respondent�s Profile

Variables Respondent�s Number Percentage Cumulative %

MBM KPM MBM KPM MBM KPM

AGE group in yrs

21-30 12 21 14 22 14 22

31-40 34 39 38 42 52 64

41-50 27 22 30 24 82 88

51 & above 16 11 18 12 100 100

Total 89 93 100 100

Gender

Male 47 52 53 56 53 56

Female 42 41 47 44 100 100

Total 89 93 100 100

Number of Visits

One 74 54 83 58 83 58

Two 11 23 12 25 95 83

More than 2 4 16 5 17 100 100

Total 89 93 100 100

Motivational Factor

Friends 17 23 19 25 19 25

Media 34 53 38 56 57 81

Past Experience 12 7 14 8 71 89

Any other 26 10 29 11 100 100

Total 89 93 100 100

Country/Region

Western 14 41 16 44 16 44

Eastern 17 16 19 17 35 61

Central Asia 37 13 41 14 76 75

Others 21 23 24 25 100 100

Total 89 93 100 100

Source: Primary Data MBM- Mahabalipuram, KPM -Kanchipuram

Kozak, M. and Mike Rimmington (2000). Tourist Satisfaction with

Mallorca, Spain, as an Off-Season Holiday Destination.Journal of Travel Research, 38, 260-269.

Maddox, R. Neil (1985). Measuring Satisfaction with Tourism.

Journal of Travel Research, 25, 2-5.

Parasuraman, A.; V.A. Zeithaml and L.L. Berry (1998).

SERVQUAL, A Multiple-items Scale for Measuring

Customer Perception of Service Quality. Journal of Retailing,

64, 2-40.

Pizam, Abraham and Gang-Hoan Jeong (1996). Cross-culturalTourist Behavior. Tourism Management, 17(4), 277-286.

Ross, Glenn (1993). Destination Evaluation and Vacation

Preferences. Annals of Tourism Research, 20, 477-489.

Söderlund, M. (1998). Customer Satisfaction and its Consequences

of Customer behavior Revisited. International Journal of

Service Industry Management, 9(2), 169-188.

Tribe, J. and T. Snaith (1998). From SERVQUAL to HOLSAT:

Holiday Satisfaction in Varadro, Cuba. Tourism

management, 19(1), 25-34.

Weaver, David and Lawton, Laura (2002). Tourism Management

(2nd Edition), Milton Qld: John Wiley and Sons Australia.

Woodside, A. G. and S. Lysonski (1989). A General Model of

Traveler Destination Choice. Journal of Travel Research, 27(4),8-14.

Ziny, A. (2001). Relative Attitudes and Commitment in Customer

Loyalty Models. International Journal of Service Industries

Management, 12(3), 269-294.



Table 2: Satisfaction of the Mahabalipuram Tourists (According to Gap Score Holsat Model)

Service Attributes Experience Actual Services GAP ScoreRendered

Mean SD Mean SD

1.Food quality 3.42 1.253 3.220 0.985 -0.200

2.Eating facility 3.31 1.034 2.710 1.324 -0.600

3.Behaviour of the service provider 3.22 0.957 3.200 0.901 -0.020

4.Availability of food at reasonable price 3.49 0.961 3.580 1.076 0.090

5. Quality of accommodation at the Destination 3.14 0.943 2.880 0.873 -0.260

6.Adequate washroom facilities 3.35 1.114 3.000 1.127 -0.350

7.Wide choice in the selection of accommodation 3.41 1.305 3.780 1.002 0.370

8.Quality of local transportation 2.79 0.974 2.680 0.895 -0.110

9.Convienent location of the destination 3.22 0.896 2.830 0.977 -0.390

10.Availability of the Shopping facility 3.14 1.147 3.400 1.265 0.260

11.Availability of Communication Infrastructure 3.08 1.108 3.290 1.012 0.210

12.Cleanliness 3.12 1.003 2.950 0.983 -0.170

13.Sufficient Access to drinking water 3.03 0.965 2.710 0.929 -0.320

14.Adequate Safety & Security facilities 3.30 1.085 3.470 1.264 0.170in the destination

15.Adequate Space for Vehicle Parking 2.56 0.764 3.700 1.014 1.140

16.Availability of tourist guide 3.20 0.938 3.110 0.784 -0.090

17.Friendliness of the local people 4.13 1.153 3.050 1.112 -1.080

18.Climatic Conditions 3.06 0.845 3.280 1.214 0.220

19.Uniqueness of the destination 3.47 1.172 3.170 0.984 -0.300

20.Availability of Hospital Facilities 3.14 1.137 3.020 0.879 -0.120

21.Culture,Cultural activities & events 3.05 1.203 2.770 0.657 -0.280

22. Relaxed Atmosphere in the destination 2.97 1.016 3.120 0.715 0.150

23.Availability of tourist info in local info centers 3.20 1.072 3.060 0.852 -0.140

24. Destination plan (Display of Sign Boards) 3.02 1.012 3.270 1.076 0.250

25. Courteousness & Helpfulness of the 3.15 1.255 2.860 0.968 -0.290 Authorities & Staff in the destination

Source: Primary Data

33

Table 3: Satisfaction of the Kanchipuram Tourists (According to Gap Score Holsat Model)

Service Attributes Experience Actual Services GAP ScoreRendered

Mean SD Mean SD

1.Food quality 3.100 0.946 3.760 1.273 0.660

2.Eating facility 3.700 1.037 3.200 1.003 -0.500

3.Behaviour of the service provider 3.070 1.275 3.350 1.196 0.280

4.Availability of food at reasonable price 2.650 0.846 2.930 0.783 0.280

5. Quality of accommodation at the Destination 2.961 0.937 3.350 1.258 0.389

6.Adequate washroom facilities 3.118 1.116 3.550 0.973 0.441

7.Wide choice in the selection of accommodation 2.882 0.821 3.190 1.149 0.311

8.Quality of local transportation 3.204 1.339 2.419 0.682 -0.785

9.Convenient location of the destination 2.920 0.746 3.387 1.110 0.467

10.Availability of the Shopping facility 3.279 1.023 3.139 0.918 -0.140

11.Availability of Communication Infrastructure 3.032 0.998 3.311 1.064 0.279

12.Cleanliness 4.053 1.115 3.258 0.770 -0.795

13.Sufficient Access to drinking water 2.397 0.687 2.978 0.938 0.581

14.Adequate Safety & Security facilities 3.011 0.974 3.660 1.273 0.649in the destination

15.Adequate Space for Vehicle Parking 3.548 1.036 2.640 0.938 -0.908

16.Availability of tourist guide 3.700 1.365 2.440 0.941 -1.260

17.Friendliness of the local people 3.043 1.074 3.460 1.384 0.417

18.Climatic Conditions 2.978 0.926 2.950 0.795 -0.028

19.Uniqueness of the destination 2.913 0.846 3.440 0.906 0.527

20.Availability of Hospital Facilities 3.344 0.987 2.709 0.617 -0.635

21.Culture,Cultural activities & events 3.709 1.296 3.204 0.824 -0.505

22. Relaxed Atmosphere in the destination 2.870 0.795 3.440 1.005 0.570

23.Availability of tourist info in local info centers 2.838 0.872 2.505 0.755 -0.333

24. Destination plan (Display of Sign Boards) 2.690 0.869 3.354 0.820 0.664

25. Courteousness & Helpfulness of the 2.820 1.187 3.688 1.036 0.868Authorities & Staff in the destination

Source: Primary Data

Table 4: Analysis of Mahabalipuram Tourists (Dimensions of HOLSAT Model)

Dimensions No. of attributes Experience Actual Service Rendered GAP Score

Mean SD Mean SD

Attractions 5 3.258 0.160 3.15 0.097 -0.108

Activities 5 3.305 0.252 3.05 0.334 -0.247

Accessibility 5 3.344 0.399 3.02 0.163 -0.320

Accommodation 5 3.220 0.133 3.18 0.330 -0.040

Amenities 5 2.960 0.264 3.21 0.396 0.250



Table 5: Analysis of Kanchipuram Tourists (Dimensions of HOLSAT Model)

Dimensions No. of attributes Experience Actual Service Rendered GAP Score

Mean SD Mean SD

Attractions 5 3.0350 0.1770 3.0730 0.463 0.038

Activities 5 3.0990 0.3541 3.0680 0.367 -0.031

Accessibility 5 3.0350 0.3523 3.3660 0.429 0.331

Accommodation 5 3.2090 0.4290 3.3340 0.124 0.125

Amenities 5 3.1890 0.4617 3.1240 0.331 -0.065

35

TPM EFFECTIVENESS: AN OPERATIONAL STUDY

Rajeev K Shukla* and Ajit Upadhyaya**

Making optimum use of the available resources and opportunities as well as acquiring acompetitive edge has become the guiding mantra of the globalized business operations. Thisscenario has necessitated bench marking of operations with global best practices. It can beachieved by adapting a time-tested philosophy, called Total Productive Maintenance (TPM).TPM is a philosophy, which brings results when practiced. It achieves the optimum use ofresources and obtains best results. It is more than just a �tool�. It is a holistic productivityimprovement system that drives the entire factory and work force. A dynamic, profit orientedapproach for plant and equipment management, Total Productive Maintenance (TPM)combines the principles of preventive and predictive maintenance with management strategies,that increase profitability and return on assets through employees participation. TPM, is aquality focused approach for asset management. In the present study, effectiveness of TPMimplementation was analyzed with the case of PepsiCo India Holding Private Ltd. (Frito-LayDivision), Channo Plant. Productivity enhancement, Quality improvement, Cost control,Delivery in time, Safety and mora1e in operational system were considered as parameters foranalyzing effectiveness of TPM implementation. Hypotheses was formulated by consideringthese parameters of TPM effectiveness. Benchmark values of these parameters provided basisfor analysis. Findings of the study highlights on the opportunities to improve effectiveness ofTPM implementation by drawing due consideration towards critical dimensions of effectivenessparameters.

*Professor, Shri Vaishnav Institute of Technology and Science, Indore**Associate Professor, Prestige Institute of Management and Research, Indore

INTRODUCTION

The business scenario across the world isgoing through a process of sea change. Policies,practices and strategies are changing fast to copewith the situation. The Indian market scenariotoo has followed the global trend with theopening up of its economy and marketsfollowing deregulation. Thus, the greatestchallenge before the industry is to adapt to thenew rules of the market quickly and effectivelyin order to build up profitability. Makingoptimum use of the available resources andopportunities as well as acquiring a competitiveedge has thus become the guiding mantra of theday. Companies are drawing business strategiesto achieve customer delight by ensuring timelydelivery of reliable products and services athighly competitive prices. Hence the focus is onsupply of quality goods and services at priceswhich are competitive.

This scenario has necessitated bench markingof operations with global best practices. It can beachieved by adapting a time-tested philosophy,which promises total elimination of allunnecessary costs associated with material,operations, maintenance time and minimizationof all type of losses with total involvement of everyemployee of the organization. TPM is aphilosophy, which brings results when practiced.It achieves the optimum use of resources andobtains best results. It is more than just a �tool�. Itis a holistic productivity improvement system thatdrives the entire factory and work force. Adynamic, profit oriented approach to plant andequipment management, Total ProductiveMaintenance (TPM) combines the principles ofpreventive and predictive maintenance withmanagement strategies, that increase profitabilityand return on assets through employeesparticipation. TPM is a quality focused approachfor asset management.



TPM provides a systematic procedure forlinking corporate goals to maintenance goals.This procedure considers external and internalcorporate environments, development of a basicmaintenance policy, identification of key pointsfor maintenance improvement, and finally thedefinition of target values for maintenanceperformance. In the TPM framework, the goalsare to develop a �maintenance-free� design andto involve the participation of all employees toimprove maintenance productivity. A metric,termed the �overall equipment effectiveness(OEE),� is defined as a function of equipmentavailability, quality rate, and equipmentperformance efficiency.

The TPM metrics offer a starting point fordeveloping quantitative variables for relatingmaintenance measurement and control tocorporate strategy. TPM focuses on eliminatingmajor �losses� encountered in productionactivities. These losses are decomposed intomajor losses obstructing equipment efficiency,manpower (personnel) efficiency, and efficiencyof material and energy. Based on their links toachieving corporate goals, targets to eliminateor reduce these losses are developed directly forthe maintenance task in a production system.Just as in activity-based costing (ABC), wherecost drivers are identified, the objective here isto identify variables that can demonstrate causalrelationships these maintenance activities haveon production system performance. Each of themajor equipment losses are functionally relatedto availability, performance efficiency, and/orquality rate. Thus, the improvement from amaintenance system can be measured by itsimpact on the OEE.

LITERATURE REVIEW

The concept of TPM which aims atmaximizing the equipment effectivenessoriginated from Japan. It made progressivestrides in countries like USA, Europe and otherSouth Asian countries after its successfulimplementation in Japan (Pardue et al. 1994).TPM is beginning to make the transition from arepair department to that of high level businessfunction. TPM transcends this conventionalapproach in transforming the responsibility of adepartment into a company wide culture of

autonomous maintenance by everyone, aimedat not just preventing the breakdowns, but alsoat making the machinery live up to its fullpotential (Majumdar 1998).

In modern day manufacturing and serviceindustries, improved quality of products andservices increasingly depend upon the featuresand conditions of the organization�s equipmentand facility. The economic environment isbecoming increasingly harsh. In order to surviveevery industry has to strive for improvingproductivity in all spheres of activities. Hence itis logical to utilize the resources like machinery,men, and material as optimally as possible(Krishnaiah, 1995).

TPM transcends this conventional approachin transforming the responsibility of adepartment into a company wide culture ofautonomous maintenance by everyone, aimedat not just preventing the breakdowns, but alsoat making the machinery live up to its fullpotential (Majumdar, 1998).

It would be very difficult to achieve the mostcost effective objective if the business iscontinued to be operated in a very functionalway, regarding the condition of machinery andequipment as the sole responsibility ofmaintenance department. Traditional attitudesacross a range of companies are typified bystatements like �it is my job to operate themachine: it is someone else�s job to fix it if it goeswrong�. Barriers between production andmaintenance personnel shown up by this remarkhave been matched by barriers between tradesthemselves. One of the bad results has been atraditional lack of further development trainingfor skilled maintenance craftsmen once theirapprenticeship has been completed (Spratling1987).

TPM is not a mere combination of MP(Maintenance Prevention)-CM (CorrectiveMaintenance)-PM (Preventive Maintenance) butit emphasizes promoting maintenance through�autonomous maintenance� by encouragingsmall group activities (Nakajima 1982). Theconcept of TPM lays much emphasis inmaximizing the equipment effectiveness byeliminating all forms of inefficiencies, hindering

37

capital, material and labour productivity. Themechanics of achieving such spectacular rise inequipment effectiveness is through theinvolvement of all employees in the organizationbelonging to various departments likeproduction, maintenance, technical services andstores. This is possible when all employeeschannel their energies in a specific directionwithout adopting a compartmentalizedsegmented approach. Such changes do not takeplace at the expense of maintenance jobs. Thechallenge is to do things together at a higherstandard than was previously possible.Schonberger (1986) recorded that, after they hadtaken over routine lubrication, operators atHarley Davidson found that some machinelubrication points had never been oiled orgreased before. And that is not to say thatmaintenance personnel had previously beennegligent.

Skill levels are improved by training andpractice in the right way. Constant repetitionleads to error-free and consistent performance.Auditing skills periodically helps to ensure thatstandards do not slip, so operator re-qualificationis not demeaning but simply good practice.

Murata and Harrison (1991) propose threelevels of quality of work:

(i) Repair Level: People carry out instructions,but cannot foresee the future, they simply reactto problems.

(ii) Prevention Level: People can foresee thefuture by predicting problems, and takecorrective action.

(iii) Improvement Level: People can foresee thefuture by predicting problems. They not onlytake corrective action but also proposeimprovements to prevent recurrences. So far,the focus has been limited to the systemsand people involvement necessary to develop areliability-centered maintenance programmewith increasingly close integration ofproduction and maintenance personnel.This is the essential foundation for TPM. Unlessthe basic PM disciplines and operator/maintenance cooperation are in place, it wouldbe fruitless to attempt to introduce a full TPMprogramme.

TPM is an evolutionary approach to excellencein maintenance, and feeds of many basic peoplepreparation processes such as the housekeepingand safety disciplines. There is also a strong link,and many analogies, between TPM and TQM.As a result, TPM is incapable of independentexistence.

Willmott (1993) refers to the fundamentalchanges in attitude that must take place: If aprocess is not working well, we will not only fixit, we will determine why it was not workingwell in the first place and correct thosefundamental causes, and if the process isworking, can it be improved?

The starting point for changes in attitudemust be within the top team. By recognizingthe key role of total life cycle cost of ownershipin the company, several important decisionsflow (Turcotte and Stickler 1990). If everyonecan be brought to recognize this key role, andtheir individual contribution to be well on theway to realizing the need to plan for achievingTPM and for the education which is needed tosupport it. TPM provides a platform for suchhorizontal integration of employees to tackleany equipment related problem in amultidisciplinary fashion (Krishnaiah 1995).When employees accept this point of view, theywill see the advantage of building quality intoequipment and building an environment thatprevents equipment and tools from generatingproduction or quality problems. No matter howadvanced the technology is people play a keyrole in maintaining the optimum performanceof the equipment. TPM calls for a dramaticchange from the traditional �I make � You fix�attitude that so often divide workers. ThroughTPM everyone co-operates to maintainequipment the company depends on forsurvival and ultimately for profitability. At thevery heart is the motivation, participation andenhancement of shop floor personnel (Sharma1995).

OBJECTIVES OF THE STUDY

The major objective of the study was tomeasure the effectiveness of TPMimplementation in the overall manufacturingoperations.

TPM Effectiveness: An Operational Study


HYPOTHESES

Following hypothesis were formulated:

H1: TPM Implementation significantly

improves Productivity of operational system.


improves Quality of operational system.


improves Cost of operational system.


improves Delivery of operational system.


improves Safety of operational system.


improves Morale of operational system.

METHODOLOGY

The Study: The research study is exploratoryin nature. It aims at providing an insight to thephilosophy of TPM. Basic pillars and strategiesof TPM were studied for understanding theeffectiveness of TPM implementation inmanufacturing operations.

The Tools for Data Collection: Case studymethod is used as a data collection tool for thestudy. The study uses secondary data whichwere collected from secondary sources, CIIpublications, News Bulletins of Industries. Casefor the study adopted from TPM Club IndiaBulletin.

The Tools for Data Analysis: Data wereanalyzed for measuring effectiveness of TPMimplementation. Productivity enhancement,Quality improvement, Cost control, Delivery intime, Safety and Mora1e were used as parameterfor the analysis. Effectiveness of TPMimplementation were measured for theseparameters and compared with their respectiveBenchmark values with the help of one sampleT test.

Case Profile

Company Name : PepsiCo India HoldingPrivate Ltd. (Frito-LayDivision)

Factory Site : Channo Plant

Products : Potato Chips and Kurkure

TPM kick off date : 16 June 2004

Company Profile

The plant started the operation in 1989 (duringthe days of Punjab insurgency). There was astudy growth from 1997 to 1999, before that itwas lower capacity utilization. However, since2000 there has been exponential growth. Theaverage daily production level of 90Toncomprises of lays, uncle chips, kurkure, Fritopress& Cheetos mainly catering to north andcentral India. There are 285 operatives and 47management staff operating the plant.

RESULTS AND DISCUSSIONS

Productivity of man power and overallequipment effectiveness should increase byimplementing TPM. Improvement measurestaken will result in reduced breakdownoccurrences of manufacturing operations.Productivity implies development of an attitudeof mind and a constant urge to find better,cheaper, easier and safer means of doing a job,manufacturing a product and providing aservice. It is depicted in Table1 that all subparameters of productivity performances arefollowing the above mentioned trends. Howeverimprovement in manpower productivity inpotato chips line and breakdown occurrence inKurkure production line are not significant at 5percent level of significance, when it is comparedwith the respective Bench mark values (Table 2).Thus hypothesis H

1 is partially accepted. Finding

reflects that there is a further potential toimprove man power productivity and breakdown occurrence for improving effectiveness ofTPM implementation.

Quality is the measure of an organization toprovide better acceptable products/services tothe customer. TPM implementation offers anorganization the means to produce more usableproducts/services that meets customer approval.In this case number of customer complaints andon line leaky packet percentage must be reducedfor improving quality. Table1 depict the trendof quality sub parameters after TPMimplementation. There is significantimprovement in quality (Table 2). Hencehypothesis H

2 is accepted.

Aggregate total cost of manufacturingoperation must be decreased by TPM

39

implementation. A cost reduction programmemeans maximization of profits by reducing coststhrough economics and savings in the cost ofmanufacture, administration, selling,distribution and use. Table 1 shows the reductionin variable monthly overhead cost of Potato chipsand Kurkure plant, reduction in finished productchips wastages, Energy loss and breakdownmaintenance cost. Material efficiency of Kurkureplant is higher than benchmark; it indicatesimprovement in material usage. However, onesub parameters of cost performance, Preventivemaintenance cost is not following the desiredpattern of improvement. Variation observed inpreventive maintenance cost and is higher thanbenchmark and is not desirable. There is a vastpotential for improvement in preventivemaintenance cost. It is reflected in Table2 thateffectiveness of TPM implementation forreduction in preventive maintenance cost andvariable monthly overhead cost of Kurkure plantare not significant. Thus hypothesis H

3 is partially

accepted.

Delivery performance is the ability of thesupplier to provide the required type and thenumber of items according to schedule. Aligneddispatch compliance has improved after TPMimplementation (Table 1). It resulted insignificant improvement of delivery schedule(Table 2). Thus hypothesis H

4 is

accepted.

Loss time accident, Medical treatment caseand probability of First Aid case must be reducedto minimum by TPM implementation. It wasobserved that medical treatment cases have beenreduced where as loss time accident and Firstaid cases were not up to the mark (Table 1) andthus an opportunity for improvement existsSafety and hygiene constitutes the foundationstone of the preventative approach in achievingthe goals of industrial health, as it deals withidentification, assessment and control ofenvironmental factors harmful to the health ofemployees. These factors may be physical,chemical or biological agents or ionizingradiation. The scientific approach adopted inapplying industrial hygiene include, identifyingthe extent of toxicity, effects of chemical, physicaland biological agents; identifying the extent ofemployee exposure through inhalation, skinabsorption or ingestion; recommending and

implementing process controls that reducesexposure to harmful substances and followingsafe work practices including use of personalprotective equipment to control exposures. Table2, indicates measures taken for safe operation isinsignificant. Safety consideration must get dueconsideration in manufacturing operations andaim should be zero accident. Thus hypothesisH

5 is partially accepted.

Morale of employees involved inmanufacturing operation is one of the bestindicators of TPM effectiveness. Morale is usedto describe the overall satisfaction of employeesworking in an organization. Goals of anindividual employee should be the same ascompany goals to improve productivity andworking conditions. In this case employees�involvement in operation is reflected bysuggestions provided by them for improvementof operation. It is measured by Kaizen in TPMimplementation. It should be higher.Table1indicates significant improvement in number ofsuggestion provided per employee. Hencehypothesis H

6 is accepted (Table2)

CONCLUSIONS

It is evident from the results and findings ofthe case study that implementation of TPM canbring in commendable reforms andimprovement in terms of Productivityenhancement, Quality improvement, Costcontrol, meeting promised Delivery dates, Safety,Mora1e and in providing conducive work placefor manufacturing operation. However findingsof the study suggest that detailed analysis ofmanufacturing operation must be carried out fordeveloping safety measures in TPMimplementation. Optimization of Preventivemaintenance cost is also to be looked in forimproving effectiveness. Once effectiveness ofTPM implementation is reached at Benchmarkand remains constant for an observable periodof time than the next level of Benchmark couldbe set for further improvement in operations. Itwill provide a base for a continuous search foralternatives in every field of operational activitiesto improve performance leading to achievehigher level of effectiveness. It must be alwayskept in mind that there is always a better way ofdoing a things, when it is applied for measuring



effectiveness of TPM implementation inmanufacturing operation.

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Webliography

http://www.iipm.ac.in/total_productive_maintenance.html

http://tpmclubindia.org/tpm_supplement_auguest07.pdf

http://tpmclubindia.org/download.htm

41

Table 1: Values of Key Performance Parameters

Key Sub Parameters Unit of Benchmark Actual Actual Actual Actual BetterPerformance Measurement 2004 2005 2006 2007 2008Parameters

Productivity OEE of Process % 85 89 92 94 95 Lines

OEE of Packing % 60 71 76 80 82 Lines

Manpower Kg/Man-hr 22.9 25.58 27.9 25.39 24 Productivity inPotato chips Lines

Breakdown Nos/Year 428 325 251 175 44 ¯Occurrence inPotato Chips

Breakdown Nos/Year 123 105 90 66 17 ¯Occurrence inKurkure

Quality Customer Nos/Year 46 28 16 17 2 ¯complaints

On line-leaky % 1.2 .93 .52 .35 .3 ¯Packets

Cost Variable Monthly Rs/Kg 9.81 8.37 8.36 7.73 6.63 ¯Overheads: Potatochips

Variable Monthly Rs/Kg 1.86 1.81 1.78 1.72 1.6 ¯Overheads:Kurkure

Controllable % 2.3 1.59 1.43 1.17 .96 ¯Finished productswaste: Chips

Material Efficiency: % 95.1 96 96.4 96.8 97.03 Kurkure

Energy Loss Rs/Kg 1.09 .73 .8 .46 .34 ¯

Preventive Rs/Kg .945 .954 .89 1.03 1.03 ¯Maintenance cost

Breakdown Rs/Kg .085 .056 .072 .04 .03 ¯Maintenance cost

Delivery Aligned Dispatch % 84 88 90 91 94 Compliance

Safety Loss time Accident Nos/Year 1 1 3 0 0 ¯

Medical Nos/Year 12 9 6 3 0 ¯Treatment case

First Aid case Nos/Year 6 16 14 8 4 ¯

Morale One point Lesson Nos/Person/ .75 1.4 2.2 3.3 3.2 Year

Kaizen Nos/Person/ .8 1.5 2 2.8 3.4 Year



Table 2: One Sample T- Test

Key Sub Parameters Unit of Benchmark Mean SD T Value df Sig.Performance Measurement 2004 (2 tailed)Parameters

Productivity OEE of Process % 85 91 4.06 3.303 4 0.030Lines

OEE of Packing % 60 73.8 8.78 3.512 4 0.025Lines

Manpower Kg/Man-hr 22.9 25.15 1.88 2.676 4 0.055Productivity inPotato chips Lines

Breakdown Nos/Year 428 244.6 145.96 -2.810 4 0.048Occurrence inPotato Chips

Breakdown Nos/Year 123 80.2 41.04 -2.33 4 0.080Occurrence inKurkure

Quality Customer Nos/Year 46 21.8 16.37 -3.304 4 0.030complaints

On line-leaky % 1.2 .66 .39 -3.093 4 0.036Packets

Cost Variable Monthly Rs/Kg 9.81 8.18 1.15 -3.157 4 0.034Overheads: Potatochips

Variable Monthly Rs/Kg 1.86 1.75 .099 -2.373 4 0.077Overheads:Kurkure

Controllable % 2.3 1.49 .513 -3.53 4 0.024Finished productswaste: Chips

Material Efficiency: % 95.1 96.26 .761 3.426 4 0.027Kurkure

Energy Loss Rs/Kg 1.09 .684 .295 -3.074 4 0.037

Preventive Rs/Kg .945 .969 .06 .736 4 0.503Maintenance cost

Breakdown Rs/Kg .085 .052 .017 -2.236 4 .089Maintenance cost

Delivery Aligned Dispatch % 84 89.4 3.71 3.25 4 0.031Compliance

Safety Loss time Accident Nos/Year 1 1 1.22 0.00 4 1

Medical Nos/Year 12 6 4.74 -2.828 4 0.047Treatment case

First Aid case Nos/Year 6 9.6 5.17 1.55 4 0.195

Morale One point Lesson Nos/Person/ .75 2.17 1.12 2.855 4 0.046Year

Kaizen Nos/Person/ .8 2.10 1.029 2.823 4 0.048Year

43

EFFECTIVENESS OF ACTIVITY BASED LEARNING INMANAGEMENT EDUCATION: A STUDY OF MANAGEMENTINSTITUTES IN GURGAON DISTRICT

Neelam Jain* and Vijay Rathee**

Recent examination of practice and literature indicates a growing sophistication in the way thatwork-based learning/ activity based learning (ABL) is being theorised and facilitated in highereducation, with its gradual emergence as a distinct field of practice and study supported byrelevant pedagogies and concepts of curriculum. However, universities are beginning to engagewith these issues at a deeper level than that suggested by simple notions of employer engagementand skills development, and the evidence indicates that well-designed work-based programmesare both effective and robust. The present study is undertaken to identify the impact of twoimportant ABL methods namely, case study and group discussion on the students and facultymembers of management institutes.

*Professor, Institute of Management Studies and Research, M.D. University, Rohtak**Lecturer, Institute of Law and Management Studies, Sector 40, Gurgaon

INTRODUCTION

Since the 1980s there has been significantgrowth in the engagement of higher educationwith workforce development, along with theemergence of a distinct if varied area of provisioncommonly referred to as work-based learning/Activity based learning (ABL). The philosophyof ABL finds its antecedents in the commonnotion that learning can be best when it isinitiated by the surrounding environment andmotivated by providing optimum opportunitiesto learn. A fearless and freedom to expressenvironment always adds to best learningoutcomes.

The ABL approach is unique and effective toattract out-of �college students to college. Theteachers who are involved in implementing thismethod have developed activities for eachlearning unit which facilitated readiness forlearning, instruction, reinforcement andevaluation. ABL has transformed the classroomsinto hubs of activities and meaningful learning.The key feature of the ABL method is that it usesstudent-friendly educational aids to foster self-learning and allows a student to study accordingto his/her aptitude and skill.

ABL IN MANAGEMENT EDUCATION

The development of negotiated work-basedlearning in management education is part of an

evolution from models concerned on the onehand with setting up and accrediting in-company courses and on the other with usingthe workplace as a vehicle for subject-specificlearning (both legitimate practices in their ownright), to the conception of an individual work-based �curriculum� that grows out of theexperience of the learner, their work context andtheir community of practice (Boud 2001). Fromthis has emerged the idea of work-based learningas a transdisciplinary field that sits outside ofsubject-frameworks and has its own set of normsand practices (Costley & Armsby 2007a). Thisapproach is particularly championed atMiddlesex through a substantial institutealongside the main faculty structure, and it isalso evident in the practices of some otherleading providers of work-based highereducation in the UK and Australia.

The last two or three decades have seen anexpansion of universities� involvement in thedevelopment of the existing workforce throughmeans such as part-time in-service courses andbespoke programmes for employers. In theUnited Kingdom, as in many other advancedeconomies, there is an emerging consensus thatthe number of people in the workforce withhigher-level skills � those broadly associated withhigher education � needs to be increasedsubstantially (e.g. Leitch 2006), and that this

PIJMR, Vol. 3(2), July 2010 & Vol. 4 (1), January 2011 COMMUNICATIONS


cannot be achieved by growth in the number offull-time students alone. As a result universitiesare being exhorted to increase their involvementin workforce development and look beyondtraditional school-leaver and early-careermarkets to engagement with a wider range ofadult learners and their employers.

Research into learning at work such as thatof Gear et al. (1994), Eraut & Hirsh (2007)suggests that the most effective and valuablelearning for people in work is often that whichoccurs through the medium of work or isprompted in response to specific workplaceissues, as opposed to formal training or off-jobprogrammes. While this kind of learning can bepurely instrumental, it can also be highlydevelopmental particularly when it is linked toa personally-valued purpose and engaged withcritically and reflectively. Responding to thisthere is an ongoing trend within someuniversities to move into the �territory� of theworkplace (Scott et al, 2004) to enhance andaccredit genuinely work-based, oftenindividually-driven learning, as opposed torelying on extending more establishedapproaches to education and training into work-based settings.

ABL refers to training methods that requirethe trainee to be actively involved in learning. Itincludes the methods like on the job training,simulations, case studies, business games, roleplays and behavioral modeling. Case studymethod is the acknowledged approach to theteaching of management. Management is anapplied discipline. Experience is a great teacher.It gives the lesson first and the learning later.Theory often fails to drive home and does notget internalized. The case method simulates thereal life situation and places the student in theposition of the business manger required to makea set of decisions. With the case method, theprocess of arriving at an answer is moreimportant than the answer itself. In the processthe student learns the process of decisionmaking. The student also learns to support thedecisions with appropriate analysis andcommunicate ideas both orally and in writing.

The method of teaching thus shifts much ofthe responsibility to the student. The

methodology shifts from Instructor Led Teaching(ILT) to a Student Pull Learning (SPL). Studyingthrough the case method results in developmentof skills in critical thinking, reasoning andcommunication. When the viewpoint ischallenged and conflicting views surface, thestudent develops a greater awareness of thecomplexities of managerial decision making.While classroom group discussion teachingmodel in higher education is widely used abroad,Indian colleges and universities have also triedthis new teaching model. However, in this modeof teaching, effectiveness of teaching has alwaysbeen controversial.

OBJECTIVES

w To identify factors that affect �Case Study�and �Group Discussion� methods thatcontribute towards effective students�learning in management education.

w To identify factors that affect �Case Study�and �Group Discussion� methods thatcontribute towards the teachingeffectiveness of faculty members.

METHODOLOGY

The Study: The study is exploratory in natureand undertaken to identify the factors that affectselected ABL methods towards effective teachingand learning in management institutions ofGurgaon district.

The Sample: The sample of the study wascollected from the population of all the studentsand faculty members who could have beencontacted on the scheduled days, or those whowere willing to respond to the questionnaire.Total 100 students and 25 faculty members ofmanagement institutions were finally consideredfor the sample. The Institutions considered forstudy were: Institute of Law and ManagementStudies, Gurgaon Institute of Technology andManagement, Institute of Technology andManagement and Management DevelopmentInstitute.

The Tools for Data Collection: Primary dataof the study were collected from two standardquestionnaires one for students and another forfaculty members. The attributes of questionnairewere measured on a 7-Point Likert scale of

45

importance with 1 being extremely unimportantand 7 being extremely important. Secondary datawere collected from various books, publications,journals and different websites.

The Tools for Data Analysis: Factor analysiswas used in this research to summarize thevariables by examining correlations between thevariables, and to create an entire new set ofvariables to replace original variables. Factorswere derived using principal componentmethod, which summarizes the originalinformation into factors for prediction. Onlythose factors having Eigen values greater than 1were included. Factors were rotated using thevarimax rotation method. According to Hair etal., (1998) factor loadings at +/- .30 are consideredminimal, +/- .40 more important, +/- .50 orgreater practically significant. Items with loadinggreater than or equal to +/- .50 were retained.

RESULTS AND DISCUSSIONS

The below mentioned variables wereconsidered for the Objective 1 of the study.

A1: Improved Team Work

A2: Leadership Qualities

A3: Improved communication skills

A4: Removed Hesitation

A5: Increased Reasoning

A6: Developing Managerial skills

A7: Participation in the class

A8: Easy understanding of concepts

A9: Improved decision making

A10: Reduced absenteeism of students

The result of factor analysis conducted onstudents data are given in table 1, table 2, table 3,table 4 and table 5. From the table 3 it can beeasily seen that only five (5) factors are to beconsidered for students, that has Eigen valuehigher than one (1). As a factor with low Eigenvalue adds little to the explanation of the variancein the variables. Once the relevant factors havebeen attained they are rotated through varimaxrotation method. Varimax rotation is one suchmethod that maximizes the variance of theloadings within each factor.

Factor 1 includes leadership qualities,improved communication skills and developing

managerial skills of the students. The values ofthe factor shows negative sign for leadershipqualities and developing managerial skills instudents, that means the two are not important.The case study and group discussions are notmuch contributing for these two aspects of thestudents but if we look at the improvedcommunication skills it is something that is theneed of the hour and is straight awaycontributed by case study and group discussionsif they are the part of delivering concepts. Factor2 consists of reduced absenteeism of students,again with negative sign and hence showing thatit doesn�t contribute towards increasedattendance of he students. Similarly Factor 3includes Participation in class and Easyunderstanding of concepts both with positivesigns, denoting that Concepts could beunderstood by students in much easier mannerwith the implementation of case study and groupdiscussion compared to theoretical lectures.Factor 4 includes removed hesitation withfavoring sign. Factor 5 consists of improved teamwork and increased reasoning again withfavoring sign and hence represents the case studyand group discussion contributes positively forthese two aspects also. The table 6 is showingfactor ranking to identify the importance ofdifferent factors.

The below mentioned variables wereconsidered for the Objective 2 of the stud.

B1: Convenience of teaching.

B2: Better knowledge to students.

B3: Improved motivation of students

B4: Confidence of faculty

B5: Clarity of conceptual knowledge.

B6: Proper implementation of concepts.

B7: Students interest in topic.

The result of factor analysis conducted onfaculty members� data are given in table 7, table8, table 9, table 10 and table 11. From the table 9it can be easily seen that only four (4) factors areto be considered for faculty members, that hasEigen value higher than one (1). As a factor withlow Eigen value adds little to the explanation ofthe variance in the variables. Once the relevantfactors have been attained they are rotatedthrough varimax rotation method. Varimax

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rotation is one such method that maximizes thevariance of the loadings within each factor.

Factor 1 includes confidence of faculty andstudents interest in topic which has confidenceof faculty with negative sign hence showing thatit doesn�t contribute towards confidencebuilding for faculty members as it is consideredthat that already have enough to deliver theconcept and face students� queries but ispositively contributing in the enhancement ofstudents� interest in topic. Factor 2 includesconvenience of teaching and properimplementation of concepts both with positivesign, referring towards the contribution of casestudy and group discussions. Factor 3 includesbetter knowledge to students with positive sign.And Factor 4 includes improved motivation ofstudents and clarity of conceptual knowledgeboth with negative sign. The table 12 is showingfactor ranking to identify the importance ofdifferent factors.

CONCLUSION

There is absolutely no doubt that the studentsare truly engaged in the act of learning, thoughthere could be degrees of difference amongthem. During the several hours of observation,one rarely came across a student who was notpursuing an academic task or a related task. Thereis eagerness and a sense of purpose in the mindsof students. One is left in no doubt that a feelingof mastery is the best reinforcement for thedevelopment of competence. It seems to workfar better than the traditional methods of takingnon-stop lectures. Once the ABL system has beenmastered by the faculty members and thestudents, the burden on the faculty is reduced.Even though the faculty needs a period of un-

learning and re-learning, when moving from theconventional system to the ABL, the end resultis very satisfying. He is justifiably proud of hismastering the administration of the new systemand of the student�s achievements.

References

Anandalakshmy, S. (2007). A Report on an Innovative Method in

Tamil Nadu, 10, 11, 12.

Boud, D. (2001). Creating a Work-Based Curriculum. Work-Based

Learning: A New Higher Education, Buckingham: Society

for Research into Higher Education, Open University Press

Costley, C. and Armsby, P.( 2007). A Work-Based Learning

Assessed As a Field of Mode of Learning. Assessment and

Evaluation in Higher Education, 32(1), 21-33.

Eraut, M. and Hirsh, W. (2007). The Significance of Workplace

Learning for Individuals, Groups and Organisations. Oxford:

University of Oxford (SKOPE Monograph 6).

Gear, J., McIntosh, A. and Squires, G. (1994). Informal Learning in

the Professions. University of Hull Department of Adult

Education.

Leitch, S. (2006). Prosperity for All in the Global Economy: World-

Class Skills H. M. Stationery Office, London.

Lester, Stan and Costley, Carol, Work-Based Learning at Higher

Education Level: Value, Practice and Critique, Middlesex

University, London

Macdonald, Janet and Twining Peter (2002). British Journal of

Educational Technology. Assesssing Activity Based Learning

at Networked Course, 33(5), 603-618.

Savin-Baden, Maggi (2000). Problem-Based Learning in Higher

Education: Untold Stories, The Society for Research into

Higher Education and Open University Press.

Scott, D.; Brown, A., Lunt, I. and Thorne, L. (2004). Professional

Doctorates: Integrating Professional and Academic

Knowledge. Buckingham: Society for Research into

Higher Education, Open University Press.

Webliography

http://crcrampurakt.blogspot.com/2010/03/activity-based-

learning-abl.html5/02/11.

http://en.wikipedia.org/wiki/Activity-based_learning22/02/11.

http://eng.hi138.com/?i106034# 28/02/11.

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Table 1: Correlation between Variables (A1 to A10)

A1 A2 A3 A4 A5 A6 A7 A8 A9 A10

A1 1 0.152 -0.078 -0.051 0.135 0.143 0.01 0.026 -0.092 -0.118

A2 0.152 1 -0.234 -0.123 0.139 0.239 -0.125 -0.028 -0.163 -0.147

A3 -0.078 -0.234 1 0.062 -0.007 -0.271 0.16 0.03 0.002 -0.264

A4 -0.051 -0.123 0.062 1 0.091 -0.0518 -0.029 0.089 0.204 0.007

A5 0.135 0.139 -0.007 0.091 1 0.074 -0.042 -0.106 -0.118 -0.158

A6 0.143 0.239 -0.271 -0.051 0.0741 1 -0.269 -0.012 -0.197 0.097

A7 0.01 -0.125 0.16 -0.029 -0.042 -0.269 1 0.253 0.104 0.192

A8 0.026 -0.028 0.03 0.089 -0.106 -0.012 0.253 1 0.187 -0.032

A9 -0.092 -0.163 0.002 0.204 -0.118 -0.197 0.104 0.187 1 -0.152

A10 -0.118 -0.147 -0.264 0.007 -0.158 0.097 0.192 -0.032 -0.152 1

Source: Students Survey

Table 2: Principal Components

Factor 1 Factor 2 Factor 3 Factor 4 Factor 5 Factor 6 Factor 7 Factor 8 Factor 9 Factor 10

A1 -0.334 0.273 0.411 -0.357 0.151 -0.322 0.605 -0.125 0.038 -0.087

A2 -0.597 0.177 0.287 -0.126 -0.210 0.380 -0.281 -0.448 -0.133 -0.167

A3 0.496 0.452 -0.344 -0.291 0.029 -0.365 -0.239 -0.090 -0.272 -0.270

A4 0.268 0.183 0.211 0.613 0.511 -0.159 -0.083 -0.412 0.005 0.110

A5 -0.295 0.488 0.024 -0.049 0.623 0.321 -0.127 0.389 0.049 -0.107

A6 -0.653 -0.169 0.228 0.186 0.007 -0.394 -0.209 0.246 -0.434 0.105

A7 0.507 -0.217 0.292 -0.561 0.269 0.230 -0.033 -0.060 -0.301 0.276

A8 0.336 -0.043 0.718 -0.119 -0.125 -0.217 -0.395 0.159 0.318 -0.100

A9 0.504 0.146 0.375 0.431 -0.255 0.271 0.300 0.193 -0.310 -0.190

A10 -0.009 -0.845 -0.024 -0.006 0.382 0.009 0.040 -0.055 -0.038 -0.365

Source: Students survey

Table 3: Eigen Values & Variance

Factors 1 1.924 19.236

Factors 2 1.394 13.940

Factors 3 1.210 12.101

Factors 4 1.156 11.557

Factors 5 1.016 10.157

Factors 6 0.838 8.380

Factors 7 0.818 8.179

Factors 8 0.675 6.749

Factors 9 0.572 5.722

Factors 10 0.398 3.979


Table 4: Factor Matrix

Factor 1 Factor 2 Factor 3 Factor 4 Factor 5

A1 -0.334 0.273 0.411 -0.357 0.151

A2 -0.597 0.177 0.287 -0.126 -0.210

A3 0.496 0.452 -0.344 -0.291 0.029

A4 0.268 0.183 0.211 0.613 0.511

A5 -0.295 0.488 0.024 -0.049 0.623

A6 -0.653 -0.169 0.228 0.186 0.007

A7 0.507 -0.217 0.292 -0.561 0.269

A8 0.336 -0.043 0.718 -0.119 -0.125

A9 0.504 0.146 0.375 0.431 -0.255

A10 -0.009 -0.845 -0.024 -0.006 0.382


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Table 5: Rotated Factor Matrix

Factor 1 Factor 2 Factor 3 Factor 4 Factor 5

A1 -0.194 0.130 0.269 -0.180 0.589

A2 -0.509 0.307 0.055 -0.297 0.293

A3 0.767 0.232 -0.055 -0.043 0.085

A4 0.024 -0.040 0.037 0.878 0.108

A5 0.023 0.062 -0.216 0.261 0.772

A6 -0.710 -0.038 -0.108 -0.042 0.151

A7 0.442 -0.443 0.584 -0.132 0.162

A8 -0.035 0.037 0.806 0.083 -0.031

A9 0.074 0.319 0.438 0.469 -0.385

A10 -0.188 -0.895 -0.013 0.018 -0.154


Table 6: Factor Ranking

Overall mean Ranking on the basis of mean

Factor 1 3.480 5

A2 3.980

A3 3.323

A6 3.137

Factor 2 4.290 2

A10 4.290

Factor 3 3.795 3

A7 3.698

A8 3.899

Factor 4 3.629 4

A4 3.629

Factor 5 4.370 1

A1 4.931

A5 3.810


Table 7: Correlation between Variables (B1 to B7)

B1 B2 B3 B4 B5 B6 B7

B1 1 -0.07692 -0.08731 0.100935 0.038661 0.280123 -0.17347

B2 -0.07692 1 -0.03024 0.170055 0.076506 -0.06279 0.230155

B3 -0.08731 -0.03024 1 -0.05182 0.217162 -0.09742 0.111595

B4 0.100935 0.170055 -0.05182 1 -0.02997 0.163605 -0.39025

B5 0.038661 0.076506 0.217162 -0.02997 1 0.106998 0.182719

B6 0.280123 -0.06279 -0.09742 0.163605 0.106998 1 -0.11922

B7 -0.17347 0.230155 0.111595 -0.39025 0.182719 -0.11922 1

Source: Faculty survey

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Table 8: Principal Components (Faculty)

Factor 1 Factor 2 Factor 3 Factor 4 Factor 5 Factor 6 Factor 7

B1 -0.53079 0.381599 -0.25506 0.281813 -0.64409 -0.09882 0.059583

B2 0.215668 0.223376 0.844502 0.22991 -0.20175 0.094681 -0.29645

B3 0.368543 0.367436 -0.16098 -0.69644 -0.25583 0.387109 -0.054

B4 -0.59694 0.126481 0.575483 -0.36708 0.06019 -0.01147 0.397474

B5 0.250557 0.775848 -0.04705 -0.12518 0.23153 -0.51178 -0.04332

B6 -0.51091 0.514997 -0.1458 0.287278 0.396995 0.451902 -0.09024

B7 0.745856 0.218788 0.030353 0.423249 -0.03129 0.183313 0.42566


Table 9: Eigen Values and Variance (Faculty)

Eigen Values Variance

Factors 1 1.700521 24.29316

Factors 2 1.261552 18.02218

Factors 3 1.159727 16.56753

Factors 4 1.029396 14.70566

Factors 5 0.736814 10.52591

Factors 6 0.668451 9.549294

Factors 7 0.443539 6.336267


Table 10: Factor Matrix (Faculty)

Factor 1 Factor 2 Factor 3 Factor 4

B1 -0.53079 0.381599 -0.25506 0.281813

B2 0.215668 0.223376 0.844502 0.22991

B3 0.368543 0.367436 -0.16098 -0.69644

B4 -0.59694 0.126481 0.575483 -0.36708

B5 0.250557 0.775848 -0.04705 -0.12518

B6 -0.51091 0.514997 -0.1458 0.287278

B7 0.745856 0.218788 0.030353 0.423249


Table 11: Rotated Factor Matrix (Faculty)

Factor 1 Factor 2 Factor 3 Factor 4

B1 -0.082 0.739 -0.122 0.051

B2 -0.021 -0.093 0.923 0.008

B3 -0.054 -0.260 -0.165 -0.826

B4 -0.850 0.115 0.318 -0.031

B5 0.184 0.294 0.213 -0.718

B6 -0.096 0.786 0.021 -0.033

B7 0.781 -0.113 0.368 -0.156


Table 12: Factor Ranking (Faculty)

Overall Ranking on themean basis of mean

Factor 1 4.52 2

B4 4.08

B7 4.96

Factor 2 4.91 1

B1 5.28

B6 4.54

Factor 3 2.76 4

B2 2.76

Factor 4 3.94 3

B3 3.76

B5 4.12


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EFFICIENCY OF PRIVATE SECTOR LIFE INSURANCE COMPANIES ININDIA - AN APPLICATION OF DATA ENVELOPMENT ANALYSIS

Rachana Tejani*

In the year 2011, there were 24 general insurance companies and 23 life insurance companiesoperating in India. The insurance sector was growing swiftly at a rate of 15-20 percent. Dataenvelopment analysis (DEA) technique provides an excellent way of analyzing the efficiency ofinsurance industry. This paper describes the life insurance industry in India followed with themeaning and utility of data envelopment analysis. It analyses the efficiency of the selected privatesector life insurance companies in India followed with the discussion of analysis and conclusiondrawn on the basis of the same. Fourteen private sector life insurance companies are analyzedover a period of 5 years ranging 2005-2010. Further, Mann-Whitney U test is used to examinethe effect of size, market share and integration with bank network on the efficiency of the insurancecompanies.

INTRODUCTION

In India, Life Insurance sector was openedup for private life insurance companies in theyear 2000. Though the sector was opened upfor private players but the upper cap for foreigninvestment in any life insurance company waskept at 26 percent. Hence, foreign players wererequired to form joint venture to enter IndianLife Insurance market. Life insurancepenetration in India was just 4 percent. Thereducing market share of Life InsuranceCorporation of India indicated that thecompetition was going to increase amongstprivate players. Only 8 life insurance companieswere profit able after tax in the financial year2009-10. Hence it is not possible to decideefficiency of life insurance companies on thebasis of their PAT. Efficiency needed to bedetermined for these companies so thatregulatory body could frame policies todecide on future direction of life insuranceindustry. Managers are also required to knowabout the industry best practices to compete inthe market. The current study hasmeasured the efficiency of 14 private sector lifeinsurance companies in India over a period offive year from 2005 to 2010. The objective wasto identify efficient insurance company andconsider the efficient company as a benchmarkto define strategy for other companies to beefficient. This study tries to establish reference

for the industry to study and plan competitivestrategy.

LIFE INSURANCE INDUSTRY IN INDIA

The history of the Indian insurance sectordates back to 1818, when the Oriental LifeInsurance Company was formed in Kolkata. Anew era began in the Indian insurance sector,with the passing of the Life Insurance Act of 1912.The Indian Insurance Companies Act was passedin 1928. The formation of the MalhotraCommittee in 1993 initiated reforms in theIndian insurance sector. Second round ofreforms in the Insurance sector were initiatedwith the passing of the IRDA Bill in Parliamentin December 1999. The IRDA since itsincorporation as a statutory body in April 2000has fastidiously stuck to its schedule of framingregulations and registering the private sectorinsurance companies. Since being set up as anindependent statutory body, the IRDA has putin a framework of globally compatibleregulations.

As Indians grow richer and save more forretirement, the share of the Indian life insuranceindustry has increased in world markets. India�sranking among life insurance markets has risenfrom number 10 last year to 9th position,displacing Taiwan. When life insurance industrywas opened for competition in 2000, India ranked

*Research Scholar, Singhania University


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number 20 among life insurance markets andaccounted for a mere 0.5 percent of the worldpremium. Ten years on, the share had improvedto 2.45 percent, overtaking developed marketssuch as Spain, Netherlands, Switzerland,Sweden, Belgium, Ireland, Finland, South Africa,Australia and Canada.

India has grown at 25 per cent CAGR sincethe market opened up for private players in 2000.This impressive growth in the market has beendriven by fundamental factors like liberalization,global economic boom, young population,growing middle class, rising income levels andcustomer awareness. The measure of insurancepenetration (percentage of insurance premiumto GDP) and density (the ratio of premium topopulation - per capita premium) reflects thelevel of development of insurance sector in acountry. Since opening up of Indian insurancesector for private participation, India hasreported increase in both of them. But, theincrease has been almost entirely contributed bythe life insurance sector. An interesting aspectof the life insurance business in India is that ithas grown significantly faster than the grossdomestic product. The level of insurancepenetration in India at 4.6 percent is double theinsurance penetration levels in China 2.3 percent.The report shows that adjusted for inflation,India�s life insurance industry grew 10 percentto Rs 2,73,604 crore. When it comes to non-lifeinsurance, where premium is paid purely forprotection (health, auto and property), Indiaranks 26th and its share of world insurancemarket is 0.46 percent.

MEANING AND UTILITY OF DEA

Data Envelopment Analysis (DEA) is a multi-factor productivity analysis model for measuringthe relative efficiencies of a homogenous set ofdecision making units (DMUs). It is a non-parametric approach developed by Charnes etal., (1978) and further extended by Banker et al(1984). The method constructs a frontier basedon actual data. Firms on the frontier are efficient,while firms off the efficiency frontier areinefficient. Efficiency is measured as the ratio ofweighted outputs (virtual output) to weightedinputs (virtual input) and considers the valuesbetween zero and one. An efficient firm does not

necessarily produce the maximum level ofoutput given the set of inputs. Further, efficiencymeans that the firm is a �best practice� firm inthe taken sample. The DEA model has certainspecific advantages such as, it is a methodologydirected to frontier rather than centraltendencies. This model is able to identify anyapparent slack in input used or output producedand provides insight on possibilities forincreasing output and/or conserving input inorder for an inefficient decision-making unit tobecome efficient. And it also takes care ofuncovering relationships, which remain hiddenfor other methodologies, and allows to rankdecision-making units (DMUs) according to theirtechnical efficiency scores and to single out thedriving forces for inefficiencies. Varadi et al(2006).

�Efficiency� is defined as Technical Efficiency(TE) in this study, which is the product of PureTechnical Efficiency (PTE) and Scale Efficiency(SE). Pure Technical Efficiency reflects theefficiency of the resource allocation and themanagement. Scale efficiency indicates the effectof scale: small companies may not assemble theproduction or obtain the synergy, while manybig companies often move slowly and do notshow the harmony. Consequently, the scale canalso affect the efficiency of a DMU.

The DEA index can be calculated in severalways. In this study, the researcher has estimatedan input oriented, technical efficient (TE) DEAindex, assuming insurer aim to achieve higheroutput by using fewer inputs. The overallefficiencies of insurers are obtained when theconstant-returns-to-scale assumption is made.That is, when it is assumed that the performanceof an insurer continues to increase as long as theinsurer continues to increase inputs. Thevariable return to scale (VRS) dissects technicalefficiency into two different components: puretechnical efficiency and scale efficiency. Scaleefficiency of a firm can be computed by takingratio of the firm�s overall efficiency to its puretechnical efficiency. Throughout the study theresearcher has considered awareness of DEAmodel on part of the reader and has not goneinto the depth of explaining DEA model in thecurrent study.

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LITERATURE REVIEW

Fukuyama (1997) investigated productiveefficiency and productivity performances of 25Japanese life insurance companies from 1988-93and concluded that both differ from time to timeacross the two ownership types � mutual andstock under different economic conditions ofexpansion and recession. Mahlberg and Url(1998), studied Austrian insurance companiesduring 1992-1996 by means of DEA. The resultsindicate higher efficiency scores for the variablereturns to scale (VRS) case compared to theassumption of constant returns to scale (CRS).This outcome is mainly due to the large numberof fully efficient firms under VRS. Under VRSthe average efficiency score is about 75percentage points, indicating that the averagefirm has a potential for cost cutting of around 25percentage points. Under CRS the potential forefficiency gains is even larger and fluctuatesbetween 44 and 60 percentage points.

Chen and Wong (2004) studied the solvencyof general and life insurance companies in Asiaduring 1994-1999. The factors that significantlyaffect life insurers� financial health are firm size,change in asset mix, investment performance,and change in product mix, but the last threefactors were more applicable to Japan. Also, thefinancial health of insurance companies inSingapore seemed to be significantly weakenedby the Asian Financial Crisis. As the insuranceindustry in different Asian economies was atdifferent stages of development, they requireddifferent regulatory guidelines. Barros et al.(2005) estimates changed in total productivity,breaking this down into technically efficientchange and technological change by means ofDEA applied to a sample of insurance companiesoperating in the Portuguese market for theperiod 1995-2001. The paper seeks out those bestpractices that would lead to improvedperformance in the market. The companies werethen ranked according to their change in totalproductivity, concluding that some companiesexperienced productivity growth while othersexperienced reduction.

Tone and Sahoo (2005) examined theperformance of LIC using DEA from 1982-83 to2000-2001 using agent�s commission, labour cost,

debt and equity capital as input variables andlosses as the claims settled including claimswritten back and the ratio of liquid assets toliabilities as the output variables. Resultssuggested a significant variability in overall andscale efficiencies over the 19 year study period.More importantly, there had been a downwardtrend in performance, measured in terms of costefficiency, since 1994�1995. This decline was dueto the huge initial fixed cost of modernizing theiroperations. A significant increase in costefficiency in 2000�2001 suggested that LIC maybe beginning to benefit from such modernization,which will stand them in good stead in terms offuture competition. Hwang and Kao (2006)adopted two stage DEA to measure theperformance of 24 Non-Life insurancecompanies in Taiwan. The study measured themarketability in first stage and profitability in thesecond stage. The results show that each non-life insurance company performs differently atdifferent production stages.

Barros and Obijiaku (2007) evaluated theperformance of Nigerian insurance companies,using DEA from 2001 to 2005, combiningoperational and financial variables. The studyrevealed that bank network-managed insurancecompanies are found to have higher efficiencyscores than those that are not managed within abank network. Large insurance companies andcompanies with higher market share tend to bemore efficient than their counterparts. Huang(2007) evaluated the efficiency of China�sinsurance industry for period 1999-2004 usingstochastic frontier analysis. The results show thatfor cost efficiency, life insurance industry, non-state-owned companies and foreign companiesare superior to the property insurance industry,state owned companies and domestic companiesrespectively. But for the profit efficiency, whilethe life insurance industry still surpasses theproperty insurance industry, the state-ownedcompanies and domestic companies are betterthan their counterparts.

Eling and Luhnen (2008) had conducted studyon efficiency of insurance industry during 2002-2006 by cross country comparison adoptingDEA. Study including 3,555 insurance companiesfrom 34 countries revealed Denmark and Japanhad most efficient insurance companies, whereas

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Philippines had the lowest efficiency. It had beenfound that there is positive relationship betweencapitalization and efficiency. This study providedinternational growth advantage to a firm whichwas relatively efficient in efficient market.Zanghieri (2009) estimated cost and profitfrontiers, using a sample of European insurancecompanies for 1997-2006. The characteristics ofthe national markets were found to play asignificant role in explaining cost and profitefficiency. In particular, a better quality ofregulation tends to reduce and stabilise costs.Moreover, life and non life insurance businessesdiffered substantially in what derive technicalefficiency. In the life industry, large firms tendto be relatively less efficient.

Sinha and Chaterjee (2009) studied the costefficiency of life insurance companies in Indiaduring 2002-03 and 2006-07 using the new costefficiency approach suggested by Tone. Inputvariables considered for the study were operatingexpense and commission expense whereasbenefits paid to the customers and premiummobilized by the company were the outputvariables. The results suggest an upward trendin cost efficiency for first three years. However,the trend was reversed for the last two years.Owusu-Ansah et al. (2010) evaluated theperformance of Ghanaian general insurancecompanies for 2002-2007 using DEA. The studyused debt capital, equity capital and managementexpenses as inputs that were used by insurers toproduce premium, claims and investmentincome. It was observed that Ghanaian generalinsurers operated at an average overall efficiencyof 68%, technical efficiency of 87% and scaleefficiency of 78%. It was further observed thatinsurers with higher dimension and marketshares tend to have higher efficiencies; implyingthat general insurers could increase theirefficiencies by trying to increase among otherthings their dimension and market shares.

Ajlouni and Tobaishat (2010), examined thetechnical efficiency of Jordanian insurancecompanies during 2000-2006 using DEA. Theinputs variables used to measure efficiency weretechnical reserves, equity, borrowings, andoperating expenses, while the outputs include:premium and investment income. The results

reveled that insurers� efficiency was increasedover the study period which was reflected inappreciation of their stock prices. Ahmed et al.(2011) examined the impact of firm levelcharacteristics (size, leverage, tangibility, risk,growth, liquidity and age) on performance oflisted life insurance companies of Pakistan from2001 to 2007. The results of Ordinary Least Square(OLS) regression analysis indicated that size, riskand leverage were important determinants ofperformance while ROA had statisticallyinsignificant relationship with growth,profitability, age and liquidity.

Zhi and Hu (2011) analyzed the efficiency oflife insurance companies in the Mainland andTaiwan areas. Findings revealed that efficiencywas significantly affected by environmentalfactors, showing that institutional reform doesmatter for improving the efficiency of financialinstitutions. Also, debt equity had a significanteffect to increase efficiency, indicating thatincreases in the market share and financialleverage ratio helped promote efficiency.Further, ownership types had differentadvantageous effects on different inputs. Theyears since establishment had no significanteffects on efficiency indicating that the youngermainland Chinese life insurance companies donot have disadvantages because it was in an openand competitive market environment.

ANALYSIS OF EFFICIENCY USING DEA

In India 23 life insurance companies existedin the 2010 with dominance of public sectorbehemoth Life Insurance Corporation of India(LIC of India). LIC of India enjoyed not less than70 percent market share for all the yearsconsidered for study. For this reason LIC wasexcluded in the study to avoid biasedness. Fromremaining 22 private sector life insurancecompanies, study included 14 companies whichwere registered with IRDA as on 31st March 2005.The researcher considered the time frame of 5financial years from year 2005-06 to 2009-10. Datawas collected from public disclosure of lifeinsurance companies, IRDA website, and annualreport of IRDA. Selection of input and outputvariable for current study was based on literaturereview and availability of data. 5 variables wereused for the study which as given below.

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Input 1 - Operating Expenses: This includesemployee remuneration, traveling expenses,stationary, communication expenses,advertisement and publicity, interest and bankcharges and distribution charges, etc.

Input 2 - Commission Expenses: Salary ispaid to the employees of the organization butthe advisors, brokers and bancasurance are beingpaid commission. This is a crucial component ofany insurance company.

Input 3 - Total Investment: This includesfund invested for life funds, pension & annuitiesfund and unit linked plans.

Output 1 - Net Premium: Like sales revenueis important in any other industry, premium isequally important for life insurance companies.The input variables Commission expenses andoperating expenses are spent to generatepremium. Market share of any insurancecompany is determined on the basis of premiumthat it has been able to generate.

Output 2 - Net increase in liabilities - This isnet increase in premium. Net increase in netliabilities is taken from L 24 form of publicdisclosure. This is liability that company hasgenerated due to its business.


It was observed that Indian private lifeinsurers operated at an average overall efficiencyof 80 percent, technical efficiency of 86 percentand scale efficiency of 93 percent. There wasroom for improvement of the overall, technicaland scale efficiencies of the insurers since theaverage efficiencies for the period were observedto be less than 100 percent. It was also observedthat the scale efficiency scores were higher thanthe overall and pure technical efficiency scores.This meant that Indian life insurers weremanaged with relatively less managerial skillsand scale of operation was not a source ofinefficiency. The mean of technical efficiencyscore tended to increase year by year.Numerically the sample means were 0.727, 0.764,0.772, 0.898 and 0.816 from 2005-06 to 2009-10.This increasing trend indicated that theefficiency of life insurance companies as a wholehad increased. Most private sector life insurance

in India gave increasing return to scale indicatingthat there was huge potential left in companiesto expand their operations. India hadpenetration of just 4 percent which indicated thatthere was ample opportunity for all insurancecompanies to grow.

SBI Life Insurance and ICICI Prudential Lifeinsurance were the only two insurancecompanies which had been efficient for all theyears be it CRSTE scores or VRSTE score.Technical efficiency and pure technical efficiencyof Birla Sun Life, Aviva, ING Vysya, Max NewYork and Tata AIG was below the industrystandard. But the interesting aspect was thatthese DMU�s had been able to achieve scaleefficiency which was higher than the industrystandard. This showed that the company�stechnical efficiency had deteriorated muchbecause of pure technical efficiency. Thusresource allocation and management abilityneeded to be improved. All the companies exceptBajaj Allianz had increasing returns to scaleduring the last 3 years of the study. Bajaj Allianzhad got pure technical efficiency score 1 whichmeant company management had done good jobso far. Its decreasing returns to scale indicatedthat the company had less potential to grow.HDFC Standard Life Insurance had beenefficient only once in the five years but theinsurer had shown relatively good efficiencyscore which ranged between 0.70 to 0.895 for allthe years in which the insurer was inefficient. Ithad potential to grow as it had increasing returnsto scale. Insurer had been inefficient in allocationof resources and managerial aspect.

Inefficiency of Shriram and Sahara LifeInsurance was due to scale and not because ofmanagerial inefficiency. Sahara India LifeInsurance had been inefficient for all years asper the CRSTE scores but it had been efficientfor all years as per the VRSTE scores. Their puretechnical efficiency score clearly stated that themanagement of company had performed welland inefficiency was due to scale that wasmagnitude of their business. Scale inefficiencywith increasing return to scale indicated that thisinsurance company had potential to become acompetitive player of life insurance industry.Kotak Mahindra Old Mutual Life Insurance wasan efficient DMU for year 2005-06 and 2006-07

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but in the subsequent years the insurer had beeninefficient. Efficiency score of Reliance LifeInsurance were near to that of Kotak MahindraOld Mutual Life Insurance. All other insurancecompanies were inefficient compared to SBI andICICI. Hence it was recommended that allinefficient firms should carefully study the modeof operation of these two insurers to becomeefficient. It could be said that only SBI LifeInsurance and ICICI Life Insurance have beenefficient in utilising their inputs to generateoutputs. Inefficiency of life insurance companiesare mainly because of managerial ability andresource allocation. Both are controllablevariables. Managers of inefficient life insurancecompanies should focus on their managerialability.

EFFICIENCY BY TYPE OF INSURER

After getting the efficiency scores of privatesector Life insurance companies we test thehypothesis given below. The Mann Whitney Utest for the non parametric analysis of DEAvalues is adopted. The constant return to scaleefficiency scores are chosen, because this scoregives the overall efficiency score.

H1: There is no difference between efficiency

score of life insurance companies having banknetwork and life insurance companies nothaving bank network. (Only 4 - ICICI, HDFC,SBI and ING out of 14 banks are integrated withbank network).


score of large life insurance companies and smalllife insurance companies. (Companies havingtheir average capital more than 735 areconsidered to be large company).


score of life insurance companies having largemarket share and life insurance companieshaving small market share. (Companies havingmarket share � based on premium generated-more than 5 percent is considered having highermarket share).

From hypotheses tests, we can conclude thatthere is no difference in the efficiency score ofthe life insurance companies having banknetwork and life insurance companies not

having bank network. This is because almost allthe life insurance companies are in agreementwith different banks to sell their insuranceproduct though bancassurance. So in this casethe success of Life Insurance Company isdepending upon the ability of insurancecompany to utilize this network in generatingleads and converting them into sale. We acceptthe null hypothesis that there is no significancedifference between small insurance companiesand large insurance companies. From this we caninfer that the equity capital of life insurancecompanies has no impact on the efficiency ofthe company. Life insurance companies withlarge market share are more efficient than lifeinsurance companies with small market share.

CONCLUSION

In this study, we have analyzed technicalefficiency of private sector life insurancecompanies between 2005-06 and 2009-10. Thisanalysis is based on DEA model that allows forthe incorporation of multiple inputs and outputsdetermining relative efficiency. This informationwill benefit regulators and managers for they canget useful evidence and insights from the DEAanalysis. Efficiency has improved over the studyperiod. SBI and ICICI Life Insurance are onlycompanies which have been efficient for all theyears of the study. Inefficient life insurancecompanies can refer to these companies andaccordingly can improve their efficiency. Ininefficient life insurance companies, inefficiencyis caused by managerial inefficiency and less dueto scale inefficiency. From our analysis we canconclude that the life insurance industry hashuge potential to grow because almost all thecompanies have increasing returns to scale.Hence, if at this stage investments are made thenreturn on this investment will be more than theinvestment made.

From hypotheses tests we can conclude thatthere is no difference in the efficiency score ofthe life insurance companies having banknetwork and those not having bank network.There is no difference in the efficiency of smalland large insurance companies. Life insurancecompanies with large market share are moreefficient than life insurance companies with smallmarket share.

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References

Ahmed, Naveed; Zulfqar Ahmed and Ahmad Usman, (2011).

Determinants of Performance: A Case of Life InsuranceSector of Pakistan. International Research Journal of Finance

and Economics, (61), 123-128.

Ajlouni, Moh�d M., Tobaishat Sinan (2010). The Effect of Technical

Efficiency in Insurance Companies on Stock Performance:

Data Envelopment Analysis (DEA) Evidence from

Jordanian Companies Listed in Amman Stock Exchange(ASE) During the Period (2000-2006). International Journal

of Strategic Management, 10(1).

Banker R.D., Charnes A. and W.W. Cooper(1984). Some Models

for Estimating Technical and Scale Efficiency in Data

Envelopment Analysis. Management Science, 30,1078-1092.

Carlos Pestana Barros and Nazaré Barroso and Maria Rosa Borges

(2005). Evaluating the Efficiency and Productivity ofInsurance Companies with a Malmquist Index: A Case

Study for Portugal. The Geneva Papers on Risk and

Insurance - Issues and Practice. Palgrave Macmillan Journals,

30(2), 244-267.

Carlos Pestana Barros and Echika Lemechi Obijiaku (2007).

Technical Efficiency of Nigerian Insurance Companies. WP 018/

2007/DE/UECE, ISSN 0874-4548, Technical University ofLisbon.

Charnes A.; Cooper W. W. and Rhodes E. (1978). Measuring the

Efficiency of Decision Making Units. European Journal of

Operational Research, 2, 429-444.

Chatterjee, Biswajit and Sinha, Ram Pratap (2009). Are Indian Life

Insurance Companies Cost Efficient? Available at SSRN: http://ssrn.com/abstract=1391904

Fukuyama, H. (1997). Investigating Productive Efficiency and

Productivity Changes of Japanese Life Insurance

Companies. Pacific-basin Finance Journal, 5, 481-509.

Hwang, Shiuh-Nan; Kao, Tong-Liang (2006). Measuring

Managerial Efficiency in Non-Life Insurance Companies:

An Application of Two-Stage Data Envelopment Analysis.International Journal of Management IRDA Journal, VIII(12),

173-177.

Kaoru Tone and Biresh K. Sahoo (2005). Evaluating Cost Efficiency

and Returns to Scale in the Life Insurance Corporation of

India using Data Envelopment Analysis. Socio-Economic

Planning Sciences, 39, 261�285.

Mahlberg, B. and Url, T. (2003). Effects of the Single Market on

the Austrian Insurance Industry. Empirical Economics,

28(4), 813�838.

Martin Eling and Michael Luhnen (2008). Frontier Efficiency

Methodologies to Measure Performance in the Insurance

Industry: Overview and New Empirical Evidence. Technical

Report, University of St Gallen, Institute of Insurance

Economics.

Owusu-Ansah, E.; Dontwi, I. K., Seidu, B., Abudulai, G. andSebil, C. (2010). Technical Efficiencies of Ghanaian General

Insurers. American Journal Of Social And Management Sciences,

1(1), 75-87.

Paolo Zanghieri (2009). Efficiency of European Insurance Companies:

Do Local Factors Matter? http://ssrn.com/abstract=1354108

Renbao Chen; Kie Ann Wong (2004). The Determinants of

Financial Health of Asian Insurance Companies. The

Journal of Risk and Insurance, 71(3), 469-499.

Varadi, Vijay Kumar, Mavaluri, Pradeep Kumar and Boppana,

Nagarjuna (2006). Measurement of Efficiency of Banks in India.

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mpra.ub.uni-muenchen.de/17350/

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2004. Wuhan University, University of Toronto.

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http://www.financialexpress.com/news/huge-potential-in-

untapped-market/732418/

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Table 1: Average Relative Efficiency of Private Sector Life Insurance Companiesfrom 2005-2006 to 2009-2010

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Table 2: Ranking of Life Insurer According to their Efficency Score


PURCHASE DECISION INVOLVEMENT: A STUDY OF EDIBLE OILS

Pragya Keshari* and Narendra Kumar**

The concept of purchase-decision involvement has been linked to various consumer behaviourand marketing constructs and has been used by marketers to segment the market. Actually, thescope for the marketer to effectively influence the consumer decision-making process dependsupon two major considerations, the kind of decision making involved and the level of involvementin the purchase-decision task. The level of involvement can be used by marketers to segment theconsumers into low, moderate, and high involvement groups which can be targeted with differentpromotional strategies. If a consumer is highly involved in a purchase decision, he will choosethe brand carefully and repeatedly. On the other hand, a consumer with less involvement in thepurchase-decision task, tend to be less loyal to the brand and may ignore the advertising messages.The present paper is an attempt to measure the level of involvement in the purchase-decision ofedible oils. The impact of gender has also been studied on the purchase-decision involvement ofedible oils. The data were collected from male and female respondents of Indore city, usingPurchase-decision Involvement Scale designed by Mittal in 1989. The data was analyzed usingmean score and z-test. The findings of the study have been discussed in the paper.

*Assistant Professor, Prestige Institute of Management and Research, Indore.**Alumnus, Prestige Institute of Management and Research, Indore.

INTRODUCTION

Understanding the ways in which consumers�involvement levels influence how they usedifferent cues to make purchase decisions hasbeen a topic of research for several decades.Purchase decision involvement is the basis forsegmenting the market and is widely acceptedby the marketers as an important variable inmarketing strategy. Like other purchase-relatedmind-sets (e.g., brand attitudes, purchaseintentions), purchase-decision involvement ismeasured as close as possible to the time whenmarketing strategies are to be formulated.Purchase-decision involvement can be definedas the extent and the concern that a consumerbrings to bear upon purchase decision task(Mittal, 1989). It is a mind-set concerning his orher view of what the right or wrong choice ofthe brand would mean to him or her, andcorrespondingly whether or not he or she wouldbe indifferent as to which of the several availablealternatives is bought. Mitchell (1979) has definedpurchase involvement as the level of concern for,or interest in the purchase process, triggered bythe need to consider a particular purchase.Enduring involvement represents an on goingconcern with a product that a consumer brought

into a purchase situation (Rothschild, 1979). Beiand Heslin (1996) suggested that this enduringinvolvement is related to consumers� brandchoices.

Purchase Involvement research has primarilyfocused upon identifying possible differencesbetween high and low involvement purchases.This distinction is based on the intensity ofinformation seeking, the amplitude ofinformation quantity, and the degree ofactivation (Bloch, 1981). Low involvement is asituation where a consumer wants to buy aproduct but does not patronizes a particularbrand. Generally these types of products are lowpriced, frequently purchased conveniencegoods, where product differentiation is difficultand the cost of poor decision is comparativelylow. On the other hand, a highly involvedconsumer carefully selects a brand due tosignificant price, style, attractiveness, quality orother difference among various brandsavailable. Products like consumer durables, highpriced items, health-related products, goods thatare infrequently purchased etc. fall in thiscategory. For these types of products, the costof wrong decision is perceived to be high. Ahighly involved purchaser is termed as an active


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consumer where as a passive customer treats apurchase as low involvement (Srivastava andKhandai, 2002). Unlike active customer, apassive customer makes no effort to analyze orretain information.

Purchase decision involvement is a functionof perceived risk that varies with the type ofpurchase involved. If the product is expensiveand perceived risk is high, the involvement inpurchase decision too is high. In addition tothis, the value of product for consumer, benefitsand accountability of the purchaser towardsorganization are the elements that playimportant role in purchase decisioninvolvement (Dhar et al, 2004). Consumerbehaviour research has demonstrated thatperceived risk is predictive of consumers�situational and enduring involvement inchoosing a product. Dowling (1999) contendedthat consumers� perceptions of risk areconsidered to be central to their evaluations,choices and behaviour. When perceived risk ishigh, consumers become more wary and riskaverse. High perceived risk leads consumers tobecome more conservative. In contrast, whenthe perception of risk is low, consumers willenjoy the positive stimulation provided byproducts and will evaluate them morepositively (Campbell and Goodsteim, 2001).Rothschild (1979) and Zaichkowsky (1985) haveconcluded that when purchase of a product,or a leisure service, is considered to beimportant to participant�s ego, self esteem, orneeds, or when there is high level of financial,social or psychological risk, then a highinvolvement state is likely to exist.

The level of involvement influences theextent of the decision making process and theamount of information search conducted by theconsumers (Laurent and Kapferer, 1985). Onthe other hand, when the product is notimportant or relevant to participant�s selfesteem, values, or needs, and perceived to haveminimal risk associated with it, they tend togather little or no evaluative information aboutchoice alternatives and follow relatively simple,non-comprehensive decision-making processes.Processes of purchase decisions undergovarious phases of searching and processing of

information depending on the complexity ofsuch decisions. Consumers with highinvolvement levels are likely to seek out anduse information about the choice alternativesand follow a comprehensive process ofdecision-making. On the other hand, in a lowinvolvement state, they tend to gather little orno evaluative information about choicealternatives and follow relatively simple, noncomprehensive, decision-making processes(Zaichkowsky, 1985). The extent of informationsearch is influenced by a number of factors suchas time pressure, previous experience, friends�advice, and so on. Mittal (1989) opines that aconsumer may not indulge in muchinformation processing if he or she has alreadyacquired the requisite information previously,or relies on expert recommendations, or simplyrepeats his or her previous choice. This shouldnot be considered as a low involvementpurchase unless consumer is indifferent as towhich of several available brands is purchased.Present paper is an attempt to measure level ofinvolvement of male and female consumers inpurchase-decision of edible oils.

METHODOLOGY

The Study: The study is descriptive in natureundertaken to measure the involvement ofconsumers while purchasing edible oils and tomake comparison in the level of involvement ofmale and female consumers while purchasingedible oils.

The Sample: The sample consisted of 100respondents, with a break-up of 50 males and 50females, from Indore city of Madhya Predesh.

Tools for Data Collection: Data werecollected by administering Purchase DecisionInvolvement Scale, designed by Mittal (1989).

Tools for Data Analysis: Data was analyzedusing mean score and standard deviation. Z-testwas applied to compare the level of involvementamong males and females, after framing thefollowing null hypothesis.

H01

: There is no significant difference in thelevel of involvement of male and femaleconsumers while making purchase-decision ofedible oils.

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The mean score was 4.674 which indicate highpurchase decision involvement amongconsumers while purchasing edible oils.

Null hypothesis (H01

) was rejected at 0.05 levelof significance (Zcal 2.8 >Ztab 1.96), whichindicates that male and female differ in theirdegree of involvement while purchasing edibleoils. Since the value of mean for male i.e. 34.12 isgreater than mean value of female i.e. 31.32,therefore male�s involvement in purchasing ofedible oil is concluded to be higher than that offemales.

The results of the study indicated thatconsumers are highly involved in purchase-decision of edible oils. Many researchers haveconcluded that when a purchase is consideredby the consumers to be important, as in case ofhigh risk products, a high involvement stateexists leading to evaluative processing ofmarketing communications and to relativelycomplex decision-making. Dhar et al. (2004)argued that individuals get involved more inpurchase decision depending on the nature ofproduct. They make decision objectives bycollecting information on utilitarian productattributes. Their needs are identified withfunctional product attributes that defineproduct performance (Assael, 2001). Accordingto Park and Mittal (1985), there are two mainfacets of involvement that affect consumerdecision-making: motivational component, andreasons for the motivation. They stated that theformer indicated cognitive/affectiveinvolvement and latter points out utilitarian/value-expressive motive. As far as edible oil isconcerned, it comes under utilitarian/value-expressive motive. Involvement of theconsumer in purchase of edible oil can bedivided into two different sub-constructs:product (that is, utilitarian) and brand (that is,value expression).

Therefore, consumer involved in the purchasedecision of edible oil will not only look at manyvariants available in the market (for e.g.sunflower, groundnut, soyabean oil, etc.), butwould also consider various brands of edible oilsavailable in the market (for e.g., Sundrop,Dhara, Saffola, Postman, etc.). Gemunden (1985)

conducted a research to study the involvementfor grocery product and reported that forgrocery products, perceived risk usually seemsto remain below a tolerated threshold. This maybe due to the fact that manufacturers of groceryproduct have clearly understood the importanceof consistency and quality to remove the threatof adverse functional consequences. However,psychological risk may still remain within thefamily which could lead to increasedinvolvement with certain product categories. Inthe study, gender emerged as an importantvariable in purchase-decision involvement.Slama and Tashchian (1985), who treatinvolvement as the relevance of a purchaseactivity to individual, supported thatdemographic variables also affect purchaseinvolvement. The results of the study show thatinvolvement of male consumers in the purchase-decision is slightly higher than that of females.A number of factors can be held responsible forthis difference.

In most of the Indian families, males are stillthe decision-makers. They have also becomehealth-conscious with the increasing numberof diseases. A health-conscious individual isexpected to choose a suitable brand of edibleoil under normal circumstances. The results ofthe study contradicts the findings of Wilkes(1975), who stated that women are apt to bemore involved in the purchasing task than men,since women have traditionally been the familypurchasing agents. They perceive purchasingas being associated with their role in the family.Richins and Block (1986) asserted that if theconsumers are involved in the use of producton day-to-day basis, as in case of edible oils,lasting involvement will enhance the stabilityof consumer behaviour relating to this product.Deshpande et al (1982) contradicted this bycontemplating that products that are purchasedrepeatedly over time tend to have lowimportance and involvement. Clarke and Belk(1979) argued that greater effort in consumerpurchase decision increases the perceivedimportance of the purchase decision andthereby increases the potential for post-purchase cognitive dissonance. Another factorthat can be attributed to purchase involvementis buying frequency (Shim and Kotsiopulos,1993).

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Warrington and Shim (2000) concluded thatconsumers with high involvement in thepurchase task are active product informationseekers. Therefore, marketers can easily targetthem with Point-of-purchase displays, targetedpromotional strategies and quality customerservice. The level of felt involvement amongconsumers trying to satisfy similar perceivedneeds is likely to vary across the productcategory, gender, their values and norms, theirsensitivity to peer group influence and therelative impact of situational factors. Highinvolvement products can be marketed moreeffectively by using rational advertising appeals,while low involvement products seem torequire emotional appeals (Crocker et al, 1983).Besides gender, many research findings haveconfirmed effect of other demographic variablessuch as age, income, socio-economic status etc.on purchase-decision involvement. Kassarjian(1981) reported a positive relationshipbetween socioeconomic status and purchasinginvolvement. In a study conducted byWestbrook and Fornell (1975), education wasfound to be positively related with purchase-decision involvement. They asserted thateducation increase the buyer�s need forinformation related to the purchase decision andthereby increase the value of search and thelikelihood of reliance on high value, high costsources such as Consumer Reports and relatedbuying guides, as well as extensive visits to theretail outlet.

CONCLUSION

The results of the study reveal high level ofinvolvement among male consumers in thepurchase-decision of edible oils. The findingsof the study have an implication for themarketers. They can use the findings tounderstand consumer behaviour better and toclassify products and advertising messagesaccording to the level of involvement. It canalso be used to segment the consumers intolow, moderate, and high involvement groupswhich can then be targeted with differentpromotional strategies. Further research can beundertaken to study crucially importantvariables like income, cultural differences, lifestage, educational background etc that can affectthe purchase-decision involvement. The study

can be replicated on a larger sample andcomparisons can be made across variousproduct categories, for better understandingconsumer behaviour.

References

Assael, Henery (2001). Consumer Behaviour and Marketing Action.

Singapore: Asian Books.

Bei Lien-Ti and Richard E. Heslin (1996). The Consumer Reports

Mindset: Who Seeks Value- The Involved or the Knowledgeable?

In Advances in Consumer Research, M. Brucks and D. J.

MaccInnis (eds.), 24, 151-158.

Bloch, Peter H. (1981). Involvement Beyond the Purchase Process.

Advances in Consumer Research, 9(1), 413-417.

Campbell, Margaret C. and Ronald C. Goodsteim (2001). The

Moderating Effect of Perceived Risk on Consumers�

Evaluation of Product Incongruity Preferences for the

Norm. Journal of Consumer Research, 28(3), 439-449.

Clarke, Keith and Russell W. Belk (1979). The Effects of Product

Involvement and Task Definition on Anticipated

Consumer Effort. Advances in Consumer Research, 6(1), 313-

318.

Crocker, J. D., Hannat, D. B. and Weber R. (1983). Person Memory

and Cause Attributions. Journal of Personality and Social

Psychology, 44, 55-66.

Deshpande, R., W. D. Hoyer and S. Jeffries (1982). Low Involvement

Decision Processes: the Importance of Choice Tactics. In R F

Bush and S. D. Hunt (Eds.), Marketing Theory:

Philosophy of Science Perspectives. Chicago: American

Marketing Association.

Dhar, Upinder, Santosh Dhar and Ravi Kumar Baranwal (2004).

Constituent Factors of Purchase Decision Involvement: An

Empirical Study. In Upinder Dhar, Santosh Dhar and

Yogeshwari Phatak (Eds.) Enhancing Performance:

Agenda for Growth, New Delhi: Excel Books.

Dowling, Grahama R. (1999). Perceived Risk: The Concept and

its Measurement. Psychology and Marketing, 3, 193-210.

Gemunden, H. G. (1985). Perceived Risk and Information Search:

A Systematic Meta Analysis of the Empirical Evidence.

International Journal of Research in Marketing, 2, 79-100.

Kassarjian, H. H. (1981). Low Involvement� A Second Look.

Advances in Consumer Reaserch, 8, 31-34.

Laurent G. and Kapferer J. N (1985). Measuring Consumer

Involvement Profiles. Journal of Marketing Research, 22, 41-53.

Mittal, Banwari (1989). Measuring Purchase Decision

Involvement. Psychology and Marketing, 6(2), 147-162.

Mitchell, A. A. (1979). Involvement: A Potentially Important Mediator

of Consumer Behaviour. In W L Wilkie (Ed.) Advances in

Consumer Research VIII, Chicago: Association for

Consumer Research.

Park C. W. and Mittal B. (1985). A Theory of Involvement in

Consumer Behavior: Problems and Issues. Research in

Consumer Behavior, 1, 201-231.

Rothschild M. L. (1979). Advertising Strategies for High and Low

Involvement Situations. In J.C. Maloney and B. Silverman

Purchase Decision Involvement: A Study of Edible Oils


(Eds.), Attitude Research Plays for High Stakes, Chicago:

American Marketing Association.

Slama, M. E. and Tashchian, A. (1985). Selected Socio-Economicand Demographic Characteristics Associated with

Purchasing Involvement. Journal of Marketing, 49 (Winter),

72-82.

Srivastava, K.K. and Sujata Khandai (2006). Consumer Behaviour in

Indian Context. New Delhi: Galgotia Publishing Company.

Westbrook, R. A. and C. Fornell (1975). Patterns of Information

Source Usage Among Durable Good Buyers. Journal of

Marketing Research, 16, 303-312.

Wilkes, Robert E. (1975). Husband-Wife Influence in Purchase

Decisions - A Confirmation and Extension. Journal of

Marketing Research, 12, 224-227.

Zaichkowsky, J. L (1985). Measuring the Involvement Construct.

Journal of Consumer Research, 12, 341-352.

Table 1 : Showing Overall Mean and Standard Deviation for Purchase-Decision Involvement

Total number of respondents 100

Mean 4.67

Standard Deviation 1.35

Table 2: Showing value of Z at Five Percent level of Significance

Male Consumers Female Consumers

Mean Score 34.12 31.32

Standard Deviation 4.148 5.708

Value of Z 2.8

63

A JOURNEY OF AMAN PALACE*

INTRODUCTION

In 1996, Sumit Saxena ventured into the hotelindustry with a mission to provide dynamicservices to the people of Indore. Sumit had nopast experience in the hotel industry. However,his father was a well known and renownedbuilder. He gave freehand to Sumit to takeindependent decisions as he was of the opinionthat a small plant cannot grow under the shadowof a big tree. Sumit decided to be a hotelier andhe set up his hotel in the prime location of thecity under the name Aman Palace. Sumit visitedvarious hotels across the country and also servedas an employee in a leading hotel of the city invarious departments from front office to house-keeping to gain experience of the hotel businessbefore entering the industry.

Within a very short span of time, Aman Palaceearned the image of a premium hotel providingtop class services to its clientele. Sumit wasenthusiastic and aggressive businessman. Helooked after every department of his hotelindependently till his younger brother joined himafter completing his master�s degree inmanagement. He personally looked after theroom servicing, room booking, housekeepingand customer feedback to maintain the standardsof his hotel. He trained the staff personnel andthere was a daily, weekly and monthly reportingsystem so as to track any discrepancy in theoperational system. The hotel started with 20rooms, one banquet hall and one restaurant,which was further expanded to a capacity of 50rooms, two banquet halls and two restaurantsin the year 1999. Subsequently, he introducedthe concept of marriage garden at his hotel andadded 6 marriage gardens for organizingceremonies, functions and marriage reception bythe year 2008.

Over the 12 year period from 1996 to 2008,Sumit did not add any value added services inthe hotel other than expanding its capacity. Hebelieved that marriages were milestones not only

in the life of people who were getting marriedbut also in the life of their parents, relatives andfriends. Therefore, he wanted to target thissegment as he believed that if he proves hisservices to the satisfaction of the customers thenhis hotel will be cherished life long by thefamilies and also then their will be no need ofadvertising and promotion. According to Sumit,he was in the business not only to make profitsbut also to share happy moments of peoples� life.Thus, he made a habit to meet the customersonce before the booking process was done andassured them about the quality of the servicesrendered to them. Sumit did not appoint anyGeneral Manager to look after the operations ofthe hotel. The hotel had six departmental headsreporting directly to him. The variousdepartments in the hotel were front office, foodand beverages, house keeping, stores, accountsand security.

STORES AND PURCHASES

The purchase department had a double checkand entry system. After cross checking all theitems with respect to the quality, weight andquantity they were sent to the accountsdepartment for the final settlement of the bills.He managed an upto date and latest method ofpurchase and material handling. He employednew software for accounting and billingpurposes. The quality of the food itemspurchased was thoroughly checked and it wasmade sure that whatever was provided to thecustomer was of good quality.

MARKETING AND PROMOTION

Sumit was of the view that in serviceindustry, services speaks about the brand. Thus,he focused on the quality of the servicesdelivered to customers. He believed that thesatisfaction of the customers would serve as astrong marketing tool in promoting AmanPalace. Thus, he maintained constant touchwith the regular customers through direct mails

*This case was developed by Ranjana Patel, Manisha Singhai, Shweta Pingle (Prestige Institute of Management and Research,Indore), and Ira Bapna (Maharaja Ranjit Singh College of Professional Sciences, Indore) during the Twentieth National CaseWriting Workshop organized by Prestige Institute of Management and Research, Indore in collaboration with Associationof Indian Management Schools (AIMS), New Delhi on May 28-31, 2008.

PIJMR, Vol. 3(2), July 2010 & Vol. 4 (1), January 2011 CASE STUDIES


and personal relations. He thought that theword of mouth of his customers will last longerthan any advertisement and promotion.Therefore, he had no marketing department orany separate staff for looking after this activity.He himself handled the public relations. Thehotel was devoted to servicing of the corporateclients whereas, the marriage gardens weresolely oriented towards marriage arrangements.The other players in the marketplace had nosuch separate venues for informal and formalfunctions.

HUMAN RESOURCE

The staff in the hotel and the marriagegarden had an average age of 35 years. Rigorousinduction and training was provided to the staffas per the requirements and standards of theindustry. The appraisal system was performanceoriented and was done from time to time. Theemployee turnover was very low due to highmorale and motivation of the employees whichwas attributed to the factors like job rotationand performance based timely appraisals. Sumitwas very keen about the overall developmentof the staff. He constantly gave inputs todevelop their skills and then promoted themto the next level.

The total workforce of the hotel was of250 people. Labor turnover was very low.He practiced unique wage policy for hisemployees in his concern by providingsalary at par with the industry. The off-season in the industry witnessed layoff of thestaff strength but Sumit disbursed 50 percentof the salary during off-season along with theholidays of 15 days for recreation and relaxation.He also allowed staff to undertake part time jobsduring this period. During the peak season hegave the rest 50 percent which were due in theoff-season which made it 150 percent of thesalary resulting in increased satisfaction of thestaff.

HOUSE KEEPING AND MAINTENANCE

The house keeping and maintenance was akey to customer satisfaction. Earlier, Sumit usedto keep his own house keeping staff, but later heoutsourced the house keeping department toother outside agencies when the staff

requirement increased with the expansion of hishotel and additional marriage gardens. He hadoutsourced the house keeping jobs to six agenciesbesides his own team.

FOOD AND BEVERAGES PRODUCTIONAND SERVICE

Sumit was very particular about the qualityof food and beverages production and services.The emphasis was mainly on room service offood and beverages. Sumit focused on the in-house guest of the hotel and special attentionwas given to their needs. The quality of food andbeverages was of utmost concern and top classservices were given to the hotel guest. Sumit hada strong belief that extending food and beveragefacilities to restaurant may affect the quality ofthe services, thus he did not opened a restaurantin his hotel.

ACHIEVEMENTS OF SUMIT

Sumit was an intelligent and proactivebusinessman. He was a sound decision makerwhich could be very well understood by hisdecision to expand his hotel business by addingmarriage gardens. Sumit acquired andestablished the marriage gardens without anyfinancial assistance and loans. He deployed theprofits from his hotel and thus utilized the idlefunds in the expansion process. He was electedunanimously as the president of City HotelOwner�s Association because of his outstandingperformance and remarkable achievements. Aspresident of City Hotel Association, he tookinitiatives to exempt VAT and got relaxation incorporate taxes for the hotels who had aninvestment of one crore or above. During histerm, he also played important role in gettingremoved the increased excise rates on theliquors served in the hotels. He was also thepresident of City Marriage Gardens OwnersAssociation. Sumit was also offered thepresident post for the state level association,which he refused because of his wide rangingengagements.

EXPANSION PLANS

Sumit was looking forward to achieve thestatus of a five star hotel for Aman Palace. Hisother future plans included establishing new

65

marriage gardens at prominent locations inIndore. Sumit also wanted to expand and tapthe new market in the nearby regions. Hewondered about what should be his futurestrategy to cement his existing position andensure continued growth.

Questions

1. Evaluate the case using SWORT analysis.

2. What strategies should be adopted by theAmar Palace to maintain its brand image?

3. What strategies should be formulated toensure future growth of Aman Palace?

ASTUTE: VALUE BEYOND TIME*

Astute System Technology Pvt. Ltd. (ASTPL)was South Asia�s largest mobile contentdeveloper, aggregator and publisher, distributingmobile content to more than 30 operators across10 countries. ASTPL had registered office locatedat Indore and corporate offices at Mumbai andNew Delhi. It had its offshore marketing officesat Thailand, Dubai, London, and Malaysia.ASTPL was a one-stop-shop for mobile operators,OEMs, portals, brands, corporate and ad-agencies who were in search of the most cutting-edge mobile solutions and VAS (value addedservices). ASTPL believed in being visionary,proactive and looking at things in fresh andoriginal ways. Its large catalogue of content wasdesigned to accelerate widespread adoption ofmobile applications by end users for Indian andInternational clients. ASTPL had robustexperience in wireless domain. It had createdmore than 250 products, had developedenterprise based applications, and receivedlicense directly from BSE (Bombay stockexchange) with world wide rights. It had strategicalliance with hungama.com for contentacquisition. It had product rights for FTV,Disney, Kingfisher, 9X, ZeeTv, IPL, MobileGames-2D/3D, Multi-Player/Single Player,Bollywood, Hollywood, Tollywood (movies andcelebrities, including movie based games),Bigadda, 8hands, Vivendi, Virgin Comics etc. toname a few.

ASTPL also offered applications for blogs /messengers /social networking, news media andm-commerce based support. It had also

developed devotional/festive applications,imagery, portfolio of music (3D) applications,financial and utility applications, calendars, slideshows, cricket, text based, sms content and manymore branded and non-branded content. It wasalso into providing mobile marketing solutionsto the brands for reaching mass end users,outsourcing, porting and translation services.The content was created, managed and deliveredthrough their platforms which provided telco-grade solution, harmonized across world wideaccepted technologies like J2me, Brew, I-Mode,Symbian, Wap, Blackberry, Wince and Palmos.In a short span of 5 years, the company wonseveral national and international awards andrecognition. With changing time and demandsof clients, ASTPL had been following innovativeand interactive marketing approaches withoutcompromising on quality and technology.Standing against intense competition, it had beensuccessfully retaining its market share throughoffering unique product portfolios.

ASTPL believed in providing best contentquality at reasonable price with easy to usewidely accessible technology. Anotheradvantage that it had over its competitors wasin terms of its wide range of partnerships withvaried brands. All their competitors were onlyin gaming but ASTPL provided multiple levelsof games to avoid market saturation. It wasconstantly focusing on forward and backwardintegration besides having highly customizedclient applications and porting tools. ASTPL wasa techno-savvy company and catered to most of

*This case was developed by Vipin Choudhary, Amrita Thakre, Kalpana Agrawal (Prestige Institute of Management andResearch, Indore) and Richa Tiwari (Prestige Institute of Management, Dewas) during the Twenty First Case WritingWorkshop organized by Prestige Institute of Management and Research, Indore in collaboration with Association of IndianManagement Schools (AIMS), New Delhi on May 7-9, 2009.

Case Studies


the segments. In addition to its glamorous clientand grandeur projects for music, sports,entertainment industry, it also had some projectswhich were socially relevant such as fishermeninformation system on mobile phones. Lookingat the overwhelming response for the fishermenproject, ASTPL was also planning to launchinformation system projects for blood banks,blood donors, hospitals, patients, etc.

One of the major departments of ASTPL wasBrew in which CDMA technology basedapplications were developed and delivered. Thecompany worked from concept development todelivery of product. Its research team firstprepared the discovery document as the clientrequirement. Then a blue print was developedby designing department and coding was done.It was then forwarded to the testing department.The software was tested under various testenvironment and then finally ported to clientfor pilot testing and then was finallyimplemented.

Quality assurance was a major concern atAstute and the focus was mainly on aspects ofquality enhancement with the help of feedback.Quality assurance started from requirementtesting when product prototype was preparedlater scratch functionality was also tested.Rigorous techniques and processes was used totest quality of their services on a constant basisthrough TBT and Veri Sign. Besides this, theorganization had an audio tech department, itdeveloped new music based applications andcomplete audio support for games andapplications. Another department was humanresource department which was the most valueddepartment in a short span of four years. Thecompany was extremely people focused andensured a healthy work environment. The workculture was westernized with an open doorpolicy and employees at all levels were called as�Saan� in Japanese language means �Ji� in Hindi.Senior executives always used to enquire aboutpersonal problems of their subordinates and theyused to give suggestions also to deal with thesituation. Recognition and due concern foremployees was a key for ASTPL�s growth.Financial needs were also fulfilled, as the salarywas at par with the best in the industry.Employee�s stock options were also provided as

incentives to further motivate the employees. Thegreatest challenge the company faced employeeretention. The performance appraisal followedby the company was unique. Key Result Areas(KRA) of each level were identified andquantified. The average age of people in Astutewas twenty two years and the CEO wasinfluenced by Japanese Culture.

One fine summer afternoon, Vijay Jain,Founder and CEO, ASPTL was discussing withhis HR head Amit Gaosandhe, about how fastthe world was moving. Vijay was enthusiasticallysharing his experience about his recent visit toJapan for an international conference onemerging trends in value-added service (VAS).Vijay had a dream for India to be global leaderin VAS technology by 2015. His vision for ASTPLwas to become one of the most trusted brandsof South Asia in gaming and application spaceby 2012. Amit, expressed his deep concern abouthuman resources requirements to achieve thedesired organizational goals. He shared hisconcern about the city namely problems relatingto infrastructure such as road, water, power,railways and air connectivity. He was alsoconcerned about the attitude of youngsters ofregion that mostly they wanted instant successand that too without much of efforts. Amitpointed out the skill set requirement for thepotential employees and argued that they werenot getting trained manpower in the organizationas the technology with which they were workingwas not so popular.

During their conversation, Vijay highlightedthat mobile phones today have moved beyondtheir fundamental role of communication andhad graduated to become an extension of thepersona of the users. Customers continuouslywanted more from their mobile phones. Theyused their cellular phones to play games, readnews headlines and astrology updates, surf theinternet, and listen to music, make others listento their music, to know score of cricket match,to know the current price of their stocks,booking movie, railway and airline tickets,checking their bank balance, weather informationand so on. Thus, there existed a vast worldbeyond voice that needed to be explored andtapped and the entire cellular industry washeading towards it to provide innovative options

67

to their customers. Spoilt by choice, the mobilephone subscribers were beginning to choosetheir operators on the basis of the value addedservices they offered. Vijay emphasized that theincreased importance of VAS had also madecontent developers� burn the midnight oil tocome up with better and newer concepts andservices. Vijay had a view that future will bedominated by triple play technology viz.

convergence of television, internet and cellphones.

Questions

1. Analyze the ASTPL using SWOT.

2. Analyse the HR issues involved in tapping andretaining talented human resources at ASTPL.

CHASING PRICES AND NOT VOLUMES*

INTRODUCTION

Getex Group, was established in early 1950�sto manufacture diesel engines, spares and gears.In 1991, the group further added to itscapabilities by setting up Getex Differential Gears(GDG). GDG was recognized for its top qualityproducts, best manufacturing practices andoutstanding customer service. GDG had a visionof being recognized as a world class gearmanufacturer. It catered to the ever growingneeds of the axel gear market for light and heavymotor vehicles like cars, trucks, tractors, etc. Italso manufactured a wide range of crown wheeland pinion sets, bevel gears, bevel pinions, spiderkit assemblies and differential cages andhousings. GDG soon became one of the majorplayers in the replacement market due to its highquality products, competitive pricing and highstandards of customer service. GDG generated50 percent of its revenues from overseas marketlike Thailand, Malaysia, USA, Pakistan, SouthAfrica, Germany and China. It had two majorcompetitors with market shares of 50 percent and25 percent whereas, GDG had 15 percent marketshare in domestic market.

GDG had a self contained setup with modernequipments, competent R&D team, trainedmanpower and in-house manufacturing ofcutting tools jigs and fixtures, which also enabledthe company to cut down new productdevelopment time and cost to a large extent. GDGhad state-of-the-art manufacturing technologyand knowledge which made them leaders not

only in domestic but also in international market.GDG exported 75 percent of its total produce.In the year 2008, recession in US economyaffected the world economy which led to areduction in GDG�s overseas orders and theexports reduced to 40 percent. GDG also had toshift its focus from overseas to domestic market.M. R. Khanna was the Managing Director ofGDG. There were 350 employees in GDGincluding General Manager (Commercial) andGeneral Manager (Technical).

PRODUCT RANGE AND QUALITY

GDG manufactured five different kinds ofautomotive spare parts for light and heavy motorvehicles. The products category included crownwheel and pinion, straight bevel gears, curviccouplings and face clutches, spider kit assembliesand differential cages and housing. The companywas ISO 9000 certified and utilized bestmanufacturing practices. The company operatedon six sigma, TPM and TQM industry standards.GDG believed in producing highest qualitydifferential part with the best possible pricesusing the latest manufacturing and metallurgicalprocesses available. This was made possible byimposing stringent quality control programs atall stages from the receipt of forgings to thepackaging of the end product.

SALES AND DISTRIBUTION NETWORK

GDG was backed by sales network spreadacross India which facilitated its products in the

*This case was developed by Ranjana Patel, Bhavna Sharma, Ritu Khabia (Prestige Institute of Management and Research,Indore) and Vaishali Shah (Indukaka Ipocowala Institute of Management, Anand, Gujarat) during the Twenty First CaseWriting Workshop organized by Prestige Institute of Management and Research, Indore in collaboration with Associationof Indian Management Schools (AIMS), New Delhi on May 7-9, 2009.

Case Studies


Indian replacement market. GDG also had zonalsales offices throughout India to ensure qualityservices and support to all its customers. It alsohad a well established network in overseasmarket. GDG generated 75 percent of its salesfrom overseas market. In August 2008, when theraw material prices of steel rose, all thecompanies had to increase the prices of theirfinished products. After January 2009, due toslowdown in international economic scene, therewas a severe downfall in raw material prices dueto which all the companies reduced theirproduct prices and reverted back to theirprevious prices. At this point of time Khanna,took a strategic decision of not rolling back theprices and continued selling at the increased rates

only, which lead to an increase in margin of upto45 percent. The company was still able to sell allits produce and also achieved the set targets.However, Gupta, G.M., Commercial Division,was worried with this decision as he believedthat the higher margin may cut down the profitsand sales as the competitors were selling at lowprices.

QUESTIONS

1. Do a SWOT analysis of GDG.

2. If you were in Mr. Gupta�s place what strategywould you adopt in a recessionary economyto sustain and enhance GDG�s market share?

ANNEXURE

GDG�s Organizational Structure

MD

GM (Commercial) GM (Technical)

Marketing Financial Training HR Production Quality

69

DANCING TO A NEW TUNE: A CASE STUDY OF MPSE*

MPSE was established in the 1928 as anassociation with around 150 member brokers.The Madhya Pradesh Stock Exchange (MPSE)was established in pre independent India as anAssociation of persons in 1928 with 150 brokersmembers. The main objective was to provide atrading platform for shares largely of textilecompanies. It was granted permanentrecognition under the provisions of theSecurities Contract (Regulation) Act, 1956(�SCRA�), by the Government of India in 1988.MPSE currently had 185 broker members,including some of the leading brokering housesin India. Around 343 companies, including someof the leading corporates of the country werelisted on MPSE. This was the only regional stockexchange having the name of the State, thus,making it operational in a wider area unlike otherregional exchanges which had city specificnames, like Pune Stock Exchange, Madras StockExchange to name a few.

The exchange registered its peak businessfrom 1985-1995 using the traditional pattern ofoutcry system. From 1995-2000 the country wentthrough an economic recession which saw anumber of companies going bankrapt andtraders loosing confidence in the stockexchanges. MPSE was a typical example of aregional exchange whose trading volumesreduced drastically and it became difficult tosurvive. In 1996, SEBI, which was a watch dogof capital markets in India became active andcame up with various initiatives for regulatingthe market and enhancing transparency.

The new initiatives of SEBI, included theestablishment of NSE in 1996 to provide an onlinetrading platform at a national level to enhancetransparency in the trading mechanism.Following this MPSE also started thinking oftransformation and they tried their level best toupgrade the technology, and gave contracts toCMC limited for developing the trading platformin 1998. They paid Rs.4.5 crores for upgradation

which consumed 50 percent of their capital. But,unfortunately, the software and hardware couldnot be implemented properly and the entireprocess fizzled out and this was true for most ofthe regional stock exchanges.

The emergence of NSE and BSE as a nationallevel exchange and inability of MPSE to provideonline trading to its members was a major causeof non performance. The major trade volumewas also with these two exchanges. The serviceinitiatives taken by NSE like starting of onlinetrading facility with excellent technology andbackup support also proved a major hurdle forregional stock exchanges like MPSE. As MPSEwas not in a position to upgrade and purchasethe heavy softwares, it could not provide theonline trading facilities to its clients and due tothis many of their clients shifted to the NSEplatform. To come out of these problems namely,low volumes, reducing market share and brokermembers who started shifting to NSE, MPSEtook the trading membership as a broker withNSE and BSE. They established a 100 percentsubsidiary of MPSE Ltd. as MPSE Securities Ltdin 1998 and it was a brokering arm of MPSE ltd.

REVIVAL PHASE

Madhya Pradesh Stock Exchange, set up asassociation of persons was now incorporated asa for-profit company limited by the shares anddemutualisation. With this, the ownership andmanagement was segregated from their tradingrights. Thus, there only existed one class oftrading members who enjoyed similar rights andprivileges. A uniform standard was maintainedin terms of the capital adequacy, deposits andfees for admitting any one as a trading memberor for accepting his surrender. Voting rights ofthe shareholders, also trading members, werelimited to 5 percent and people who were notshareholders but had trading rights wererequired to hold minimum of 51 percent of equitystake of the corporatised and demutualised stockexchange.

*This case was developed by Yogeshwari Phatak, Nitin Tanted, Manish Joshi (Prestige Institute of Management andResearch, Indore), Pinky Talati (Indukaka Ipcowala Institute of Management, Anand, Gujrat) during the Twenty FirstNational Case Writing Workshop organized by Prestige Institute of Management and Research, Indore in collaborationwith Association of Indian Management Schools (AIMS), New Delhi on May 7-9, 2009.



The exchange however, continued to faceproblems even after the demutualization of theregional stock exchanges in 2006 by SEBI. As perthe SEBI guidelines on demutalization, everyregional stock exchange had to constitute a newboard and thus, the MPSE board wasreconstituted. Now MPSE operated andmanaged by a board headed by an ex-officio asExecutive Director. The 49 percentrepresentation on the board was of the 51 percentstrategic share holders. The rest 25 percent wasfrom trading members elected by shareholders.Considering the public interest the remainingrepresentation was of members nominated fromSEBI.

After 2007, Santosh Mucchal and Ashish Goyalwho were Charted Accountant by professiontook over the Board. Mucchal and Goyal had tofind new vision for the exchange and they facedserious HR issues, severe market challenges,change in operational processes and turbulenteconomic times. The new board took severalinitiatives to revive the operation and image ofthe stock exchange by providing various servicesthrough MPSE securities. The major initiativestaken by them included the starting of the onlinetrading platform through NSE and BSE,providing the depository services by taking themembership of CDSL, getting approval to startthe F&O trading desk, initiative to start an SMEexchange in association with 13 other regionalstock exchanges under interconnected stockexchange of which they were the memberinitiator and also the establishment of MPSEInstitute of Knowledge Management (MIKM) forcreating awareness among various strata of thesociety.

The management realized that most of theirmembers were doing volume trade with brokersof other platforms like BSE and NSE. They feltthat if these brokers were provided the facilitiesthrough MPSE Securities Ltd. the exchangewould be able to increase volumes. They investeda huge amount to upgrade the technological basefor providing better service as a broker and triedto differentiate themselves with other leadingbrokers. The MPSE Securities Ltd. took manysteps to reposition themselves with the sharebroking community. The new punch line �Tradewith Trust� was focused for all the business

operations. In order to provide a bundle ofservices, the MPSE Securities Ltd. had taken themembership of CDSL for delivering thedepository services to their members. Thisallowed the members to open and maintaindemat account with them only. Thus, the transferof shares which initially was done throughanother depository participant was done byMPSE Securities saving time and cost tomembers.

MPSE was also in the process of finalizing anSME (Small and Medium Enterprises) Exchange,where companies below 25.00 crores net worthcould be listed. The guidelines for SME exchangewere already announced by SEBI. There weremore than 10,000 companies that had registeredwith ROC in the region. Thousands of SMEsbased in Central India could not get listedthemselves in the BSE/NSE due to minimumcapital norms. Majority of these were SME�s setup by the local as well as other entrepreneursthus there was a pressing need for a regionalstock exchange to cater to the capital/tradingrequirements. These companies were thetargeted clients of MPSE. Thus, MPSE had anedge over BSE & NSE, as it has greateraccessibility to SMEs in the Central India region.Already 141 companies were listed on MadhyaPradesh Stock Exchange Limited, of which,majority were in SME category. These companieswere expected to be the primary clients of MPSEas soon as the trading activities re-started.

MPSE, in order to bridge the gap betweeninvestors and knowledge of stock market /financial products, promoted an educationinstitute with an objective of imparting investoreducation and financial literacy in the field ofcapital market. They named the institute MPSEInstitute of Knowledge Management (MIKM).MIKM offered certified courses for introductionto capital market, fundamental analysis, technicalanalysis, mutual fund, derivatives, intra-daytrading strategies, depository, and commodities.MIKM was in talks with NSE, BSE, MCX, AMFI,to hold their exams in the premises of MPSE.MIKM had a state of art classroom with a capacityof 40 students and latest technological gazettes.MIKM was in an advanced stage of finalizationwith four business colleges of Indore for 45 daystraining of students. MIKM had already

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conducted classes for CA final students and 12thclass school students.

Besides MIKM, the management also took anumber of initiatives for developing its staff. Theemployees of the exchange were adopted toworking in the old laid back style and were notequipped to handle the dynamic marketscenario. The employees were also not IT savvyand the management decided that there washuge training requirement for the existing staff.The management decided not to retrench anyof the old employees but started exhaustive stafftraining programs. These training programsfocused on ungradation of knowledge withregard to technology as well as back officeprocesses. The functions of the organizationwere departmentalized and new structure wasclearly defined. The department heads wererequired to make presentation on every Saturdayon work related issues as well as come up withpossible solutions. A staff curriculum diary wasdistributed to each employee where employeeshad to note the daily agenda which was checkedby the departmental heads. Placards with quotesto enhanced customer service were given toemployees to reinforce need for improvedcustomer satisfaction.

The management also relocated their officeto a new building in the heart of the cityinvesting heavily in infrastructure to renovatethe sagging image of MPSE. To increase brandimage the management started services likeinvestor awareness program through classroomtraining at the new premises through MIKM.MPSE also set up an advisory board which wasconstituted of directors of top managementinstitutions. School children and C.A. studentswere also offered training to understand theconcept of stock exchange and these programswere very well received by the participants.Slowly the image of MPSE which was consideredan obsolete stock exchange was revived to anoperational Stock exchange.

In order to increase volume the MPSESecurities Limited started encouraging memberbroker to expand their services to other cities inoutside M.P. The exchange opened the regionaloffices in different states with state of art

technology. Branches had cubicals which weregiven on rent to the members to start theirbroking. The brokers could operate from theseregional offices through MPSE Securities Limitedand were provided risk management system dueto which they could do surveillance of their clientaccounts at any point of time. Brokers whoexpanded to more than three locations weregiven a software costing Rs.70,000 at absolutelyno cost for increasing their operationalefficiency.

Despite at all these initiatives the stockexchange including its subsidiary had not beenable to generate profit volumes and hugeinvestments were already done in destructivitythe exchange. The management was worried asit was apparent that the mindset of memberscould be changed. Moreover, the efforts toincrease the footfall so as to enhance the brandimage will be beneficial or not. Being low onfunds, heavy advertising was also a challenge.The high market share (98 percent) enjoyed byNSE and BSE was difficult to compete with.Being monopoly players these exchangescontrolled cost like connectivity cost throughlease line which was not in the hand of theexchange and could be arbitrarily increased bythese players. MCX SX a new exchange, wasbeing launched in the near future floated by thelargest commodity exchange in India. This alsoposed a new threat and challenge to themanagement.

Questions

1. Do a SWOT analysis of MPSE.

2. Do you think that the steps taken by Muchaland Goyal were appropriate to renew theefficiency of MPS.

3. If you were a part of top management ofMPSE, what strategies would you haveadopted to ensure increase in finance shareand marketing.

4. Comment on the decision taken by Mucchalto start MIKM.

5. What were the main strategic options forMPSE at the time of management change?

6. Analyze the MPSE�s branding strategy?

Case Studies


OK BANK � THE ROAD AHEAD*

On a hot may afternoon, branch manager ofOK Bank located in city of Indore was goingthrough reports of the number of accounts inhis branch and their distribution. It was twoyears since the branch had come up in Indore ata premium location on MG road. However, thebank was able to generate only 10 percent of thebusiness as compared to what the other privateand foreign banks located in its vicinity hadalready garnered. He wondered whether thiswas because of the niche marketing strategyadopted by OK bank as its main policy or it dueto the recession in the global economy.

INDIAN BANKING INDUSTRY

The Indian banking industry which wasgoverned by the Banking Regulation Act of India,1949 could be broadly classified into two majorcategories non scheduled banks and scheduledbanks. The scheduled banks comprised ofcommercial banks and the co-operative banks.In terms of ownership, the commercial bankscould be further grouped into nationalizedbanks, State Bank of India and its group banks,regional rural banks and private sector banks �both domestic and foreign.

The first phase of financial reforms resultedin a nationalization of 14 major banks in 1969 andresulted in a shift from class banking to massbanking. This in turn resulted in a significantgrowth in the geographical coverage of banks.Every bank had to earmark a minimumpercentage of their loan portfolio to the sectorsidentified as priority sector. The manufacturingsector also grew during the 1970�s in a protectedenvironment where they received a large partof their financial needs from nationalized bank.The next wave of reforms saw the nationalizationof six more commercial banks in 1980. Since thenthe number of scheduled commercial banksincreased four folds and the number of bankbranches increased eight folds.

After the second phase of financial sectorreforms and liberalization of the sector in early

90�s the public sector banks found it extremelydifficult to compete with the new private sectorbanks and the foreign banks. The new privatesector banks first made their appearance afterthe guidelines permitting them were issued inJanuary, 1993. These banks due to their late starthad access to the state of art technology whichin turn helped them to save their manpower costand provide better services.

The retail banking industry in India coveredindustry segments like housing loans, auto loans,personal loan, educational loan, consumerdurable loan and credit cards and constituted25 percent of the total credit by banks. Retailbanking was expected to grow at a CumulativeAnnual Growth Rate (CAGR) of 28 percent totouch a figure of Rs.9.7 lakh crores by the year2010. This required expansion and diversificationof retail product portfolio, better penetration andfaster service mechanism.

ABOUT OK BANK

OK Bank was incorporated as a public limitedcompany on 21st Nov, 2003 and got its certificateof commencement of business on 21st Jan, 2004.RBI granted the license to commence bankingoperations in India on 24th May, 2004 undersection 22(1) of the banking regulations of 1949.OK Bank had come out with an IPO on 15thJune, 2005 priced at Rs. 45 per share to raise Rs.315 crore and the issue was over-subscribed. OKBank had 117 branches in different cities andtowns of India.

OK Bank had only one branch located in Stateof Madhya Pradesh at Indore. This branch wasopened to cater to the most populous andgrowing city in Madhya Pradesh withpopulation of about 30 lakhs. Indore, commercialhub of Central India was one of the fastestgrowing Tier II cities in India. The averageannual growth rate of population was around 3percent. It was a favored test market forindustries owing to the diversity of itspopulation. The OK Bank branch was facing a

*This case was developed by Kapil Arora, Rupal Chowdhary (Prestige Institute of Management and Research, Indore),Neeru Singh and Rashmi Sharma during the Twenty First Case Writing Workshop organized by Prestige Institute of Managementand Research, Indore in collaboration with Association of Indian Management Schools (AIMS), New Delhi on May 7-9, 2009.


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tough competition in form of big competitorssuch as ICICI bank, HDFC and Citi Group, toname a few. OK Bank was, thus, fighting for itsbrand image and proper positioning in the nichemarket. In Indore region, the customers werenot able to recognize its name although it wasproviding world class technology and servicesto its customers.

The Indore branch of the bank was able tosecure a customer base of 1970 accounts in itstwo years of existence. The bank had a highquality technology and highest standards ofservice quality and operational excellence. OKbank believed that differentiation began with itsservice and represented the bank�s fundamentalgoal of being a highly service oriented financialinstitution. The endeavor at OK Bank was toprovide an unprecedented delightful bankingexperience. OK bank was the only private bankset up in the last 14 years in India which had gotGreenfield License (A Greenfield license is givento a private bank set up by professionals withoutany backing of any company or other banks)from RBI.

Technology was a key differentiator at OKBank. OK Bank was aggressively following andusing technology and knowledge drivenproducts to ensure proactive, on-demandsupport to meet the growth requirements, as wellas the continuous development of the systemsinfrastructure and delivery channels. It deployedFLEXCUBE, the top core banking solution as itscore banking platform which was integrated inthe system by Wipro. OK Bank�s USP lay in anonline account aggregation service powered byYODLEE known as money monitor which wasthe first of its kind service in India and wouldhelp its customers in managing their money andfinancial commitments. With money monitor,OK bank internet banking customers couldsecurely access, view, print and receive alerts ofall their financial information including onlinebanking, bill payment, brokerage, loans, creditcards, insurance fixed deposits and rewardpoints information from both OK bank and otherfinancial institutions through a single userinterface. The key features of money monitorincluded holistic financial picture, personal datareports, expense categorization, budgeting,alerts, lifetime storage and universal portfolio

tracker. It was expected that the money monitorwould deliver a truly personal experience for thebanks, retail and wealth management clients andwould provide an unparalleled experience as wellas give them control over their finances.

PRODUCT PROFILE

OK bank offered wide range of financialservices such as business banking, retail banking,corporate finance, investment banking,transaction banking and financial marketsoperations to the corporate and institutes. It alsooffered comprehensive financial and riskmanagement solutions. Business banking was adedicated business of the bank to service smalland medium enterprise (SME�s) and improvedtheir access to finance including the term financeand business development services, thereby,fostering growth, competitiveness andemployment creation.

Within the purview of retail banking, the bankoffered various accounts such as savings, salary,current and foreign currency (domestic), retailloans such as personal and small business loansand fixed deposits. Corporate financial solutionswere provided to local corporate, multi nationalcorporations, financial institutions and publicsector units. Under investment banking the bankwas involved in identification, structuring andexecution of transactions such as mergers andacquisitions, divestitures, private equityindications and IPO advisory. The bank alsoprovided a wide range of merchant banking andequity placement services.

Transaction banking at the bank was focusedupon creating and introducing efficiencies forthe customers in managing their financial supplychain which included value added solutions forworking capital management, cashmanagement, capital market services, tradefinance. Under the financial market services, theBank provided client sales and market makingservices, proprietary trading and balance sheetmanagement activities.

QUALITY INITIATIVES

The bank adopted best practices in terms ofthe highest standard of service quality andoperational excellence with innovative state of

Case Studies


art technology and offered comprehensivebanking and financial solutions. Seven of itsbranches were ISO-9001-2000 certified whereas,the remaining branches met stringent internalquality standards as given under ISOcertification guidelines. The bank followed sixsigma approach in its quality managementwhereby, key processes had been streamlined forthe benefit of the customers, i.e., reducedturnaround time, reduced waiting period etc.

CORPORATE SOCIAL RESPONSIBILITY

The bank had a vision to champion responsiblebanking in India. According to the bank, theconcepts of the corporate social responsibilityand sustainability were embedded in the DNAof the organization and integrated in its businessfocus. It was committed to the long term valueto the society and differentiated itself in themarket place based on a strong sustainabilitymandate and flexible and open in its approach.The bank was engaged with global thoughtleadership forum like the Clinton GlobalIncentive (CGI), Triple Bottom Line Investing(TBLI) and Tallberg forum. OK bank also becamethe first Indian bank to become a signatory withUnited Nations Environment Programme.

HUMAN RESOURCES

Whenever a new employee joined the bank,he was taken on an initial six monthsprobationary period during which the employeeworked as a clientele service partner.Subsequently, on the successful completion ofthe probation period, the employee was shiftedto other domains such as operations orrelationship management along with an optionto continue in the same sales profile. Employeeswere moved between the different departmentsto give them a holistic view of the bankingoperations. Incentive structure was better thanthe public sector banks but was not comparablewith other foreign banks. Performance appraisalwas basically done by superior and was mainlyhierarchical. Exit interviews for the employeeswere not formally conducted rather a telephonicfollow up was made by the HR department.

OK Bank had a number of printed manualsfor the policies and procedure. Bank hadorganized various short term orientation

programs at the head office and its ownbranches. There were target based jobs andincentives to the employee. Bank had alsoimplemented quality circles approach andrewarded the employee through awards andincentives. Regular meetings were organized toguide the employees and for sharing theknowledge. Fortnightly meetings among the topmanagers at branch was also organized for thepolicy decisions. Daily briefings were held forsales personnel. Attrition rate was high in theinitial periods due to the boom in the financialservices but later on was reduced after 2008 dueto the economic recession.

MARKETING PROCESS

OK Bank was basically a relationship drivenbank targeting the customers having incomemore than six lakhs per annum. It had a limitedworkforce in terms of sales team as they hadselective clientele. They regularly organizedmicro marketing events so that they could createmarket awareness. They did niche marketingsuch as providing sponsorships for YeshwantClub, ITC, etc. They catered mainly to the areaof 3 kms around their branch which was easily,one of the premium locations of Indore. Forcreating brand awareness the bank had organizedessay writing competitions for kids and canopyevents in the posh colonies of Indore. Financialanalysis of the parents of the kids whoparticipated in the painting competition wasmailed to them in search of prospective clients.Free health check ups were also provided.However, at the local level no market survey wasbeing conducted by the branch to assess the needof local people.

ROAD AHEAD

OK bank found itself at crossroad, one roadwent to the mass banking strategy adopted bythe private sectors bank and the other road wenttowards the exclusive client positioning done byforeign banks. The third road which might notbe ever trodden was that of PSU�s andcooperative banks. The question was whether OKbank would follow the path of other privatebanks or would chart its own path through thebanking maze ahead. The demand of the timewas for a tax savy, innovative and knowledgedriven bank which it fulfilled very well.

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However, in the long run the major issues wereof sustainability and survival in a cut throatbanking environment.

Questions

1. Do a SWOT analysis of OK bank.

2. Examine the likely impact of global recessionon bank.

3. Give suggestions to the branch managerregarding growth strategies that the bankshould adopt in the current situation.

RETAIL ASSET CENTRE: MARKETING ETHICAL VALUES*

INTRODUCTION

Industrial Development Bank of India (IDBI)was set up under the parliament act as a wholly-owned subsidiary of Reserve Bank of India (RBI)in July 1964. However, in February 1976, theownership of IDBI was transferred toGovernment of India. As a part of its expansionplan, IDBI in 1993, set up IDBI Capital MarketServices Ltd. as a wholly-owned subsidiary tooffer a broad range of financial services includingbond trading, equity broking, client assetmanagement and depository services. InSeptember 1994, in response to RBI�s policy ofopening up domestic banking sector to privateparticipation, IDBI in association with SIDBI setup IDBI Bank Ltd. IDBI was vested with theresponsibility of coordinating the working ofinstitutions engaged in financing, promoting anddeveloping industries. It had evolved anappropriate mechanism for this purpose. It hadalso undertaken wide-range of promotionalactivities including entrepreneurshipdevelopment programs for new entrepreneurs,provision of consultancy services for small andmedium enterprises, up-gradation of technologyand programs for economic upliftment of theunderprivileged.

IDBI Bank, promoted by IDBI Group startedin November 1995 with a branch at Indore withan equity capital base of Rs. 1000 million. IDBIcreated Retail Asset Centre (RAC) as a strategicbusiness unit (SBU) to cater the customers creditneeds. RAC, Indore (Madhya Pradesh) India wasformed in the dawn of twenty first century

focusing on providing services in the field of realstate, personal and education loans. Accordingto Ravi Kumar Roy, regional and cluster head ofRAC- MP and Chhatisgarh, since inception, RAChad captured twenty percent share in disbursingloans in the real estate market of Indore.Amongst the loan providers RAC was able tosecure second position with in the short span ofseven years. Among twelve RACs of IDBI inwestern India, RAC Indore stood at the top indisbursing highest volume of loans.

RAC followed the philosophy of its parentcompany IDBI and believed in being ethical.They boasted of being fully transparent in theirrelationships with their customers. Being anoffshoot of IDBI, RAC enjoyed the goodwillcreated by IDBI in market. The bank also hadpersonalized contacts with the customers whichplayed the vital role in developing retail business.According to Roy, �Once you became a customerof IDBI you stay with it for a long time. RAChad four vertical departments, viz. marketing,operations, collections and credits. Despitehaving separate identities these departmentsworked in unison. Their Indore office acted as ahub supporting and providing back officesupport to all their zonal offices in MP andChhattisgarh. One of the major debacles inselling loan-based product in Indore was thepresence of unorganized private moneylendersand non-banking financial corporations (NBFC).They gave stiff competition to RAC, as they didnot follow approving strategies as rigid as thatof RAC. On the other hand, customers asking

*This case was developed by Rupal Chowdhary, Bhavna Sharma (Prestige Institute of Management and Research, Indore),Vivek Sapru (Acropolis Institute of Management, Indore) and Bindu Malviya during Twentieth Case Writing Workshoporganized by Prestige Institute of Management and Research, Indore in collaboration with Association of Indian ManagementSchools (AIMS), New Delhi on May 28-31, 2008.

Case Studies


for a loan were themselves very indisciplined inkeeping their financial records. Out of the entireloan applications, twenty percent were rejecteddue to non fulfillment of the documentaryrequirement.

INDUSTRY SCENARIO

Retail banking in India was not a newphenomenon. It had always been prevalent inIndia in various forms. For the last few years, ithad become synonymous with mainstreambanking for many banks. The typical productsoffered in the Indian retail banking segment werehousing loans, consumer loans for purchase ofdurables, auto loans, credit cards and educationalloans. The loans were marketed under attractivebrand names to differentiate the products offeredby different banks. India in the year 2003-2004had seen the loan values of these retail lendingtypically, ranging between Rs.20,000 to Rs.100lakh. The loans were generally extended forduration of five to seven years with housing loansgranted for a longer duration of 15 years. Theretail lending had turned out to be a key profitdriver for banks with retail portfolio constituting21.5 percent of total outstanding advances as onMarch 2004. The overall impairment of the retailloan portfolio worked out much less then thegross Non Performing Assets (NPA) ratio for theentire loan portfolio. Within the retail segment,the housing loans had the least gross assetimpairment. In fact, retailing make amplebusiness sense in the banking sector. While newgeneration private sector banks had been able tocreate a niche and even the public sector bankshad not lagged behind. Leveraging their vastbranch network and outreach, banks like IDBIand SBI have aggressively forayed to garner alarger slice of the retail pie. By internationalstandards, however, there was still much scopefor retail banking in India.

PRODUCT PROFILE

The range of products offered by RAC in theMP and Chhatisgarh market were housing loans,personal loans, education loans and reversemortgage loans. Out of which housing loanaccounted for more than 50 percent of the totalvolume of business. IDBI ultra flexible homeloans had the advantage of maximum funding,as it gave flexibility of choosing between floating

or fixed interest rate, attractive rate of interest,EMI on daily reducing balance, personalizeddoorstep service, simple documentation, legaland technical assistance, balance transfer facilityand reassessment and adjustment of applicant�sloan eligibility in case of change of income andresidence status. RAC had differentiated theirproduct from other banks by providing aspecially designed insurance cover with IDBIhome loans. So even if a calamity struck, theperson taking a loan from the RAC did not haveto worry.

Personal loans from IDBI also had theinsurance cover with it. In case of death ordisability due to an accident, the insurancecompany would pay the principle outstanding.In case of loss of job, the insurance companywould pay the EMIs for up to 3 months. Applyingfor a personal loan was very simple and evencan be appled by online banking or throughtelephonic assistance. Education loan which wasa new addition in the portfolio aimed atproviding financial support to deserving/meritorious students for pursuing highereducation in India and abroad. With an array ofcourses to choose from and easy repaymentoptions, the RAC made sure that customer gotcomplete financial backing. Installment basedloans were available for most of the traditionalas well as professional courses offered byuniversities in India and abroad. Another schemewas reverse mortgage loans which seek tomonetise the house as an asset and specificallythe owner�s equity in the house. The scheme wastargeted to the senior citizen borrowersmortgaging the house property to IDBI, in returnof periodic payments to the borrowers duringthe latter�s lifetime to help them in sustainingthemselves.

MARKETING STRATEGIES

RAC marketed these products through achain of the direct sales teams (DSTs) and directsales associates (DSAs). They had thirteenemployees giving support to their teams indifferent areas of MP and Chhatisgarh. Anassociate company of around 40 DSAs wasinvolved in direct marketing and selling of theseproduct mix. Fifteen of these were looking after

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home loan products and the rent took care ofpersonal and educational loans. IDBI offered themost competitive rates in the credit markets andtheir interest rates were lowest with no hiddencost. RAC was proud of themselves in beingtransparent and trust worthy in their dealings.

According to Roy, IDBI believed in usingpersonal modes of communications rather thanusing advertising and other non-personalmeans. Instead of spending a lot of resources inmass media campaigns they preferred to havecontact meeting. For home loans they regularlyorganized builder meets where they invited allthe major builders of that particular area.Through these meets RAC initialized andmaintained cordial relationship with builderswho send their customer to RAC. Besides thesemeets RAC had advertising plans for their homeloans. These advertisements were releasedduring festival times like Holi and Diwali tohighlight their sales promotion scheme.

CHALLENGES

RAC, with most transparent and ethicalpractices was able to create new horizons in themarket. But, the competition from theunorganized money lenders, non-bankingfinancial institutions like India Bulls, Sundarams,etc. and domestic private banks such as HDFC,(the market leader) and foreign private sectorbanks such as CitiBank and Standard Chartered

which were also catering to the credit needs ofthe customers posed a major challenge in frontof RAC. Second, rising indebtedness was a likelycause for concern in the future. Besides, therewere network management challenges; whereby,keeping this complex, distributed networks andapplications operating properly in support ofbusiness objectives was also essential. Specificchallenge before RAC was to ensure that accounttransaction applications run efficiently betweenthe branch offices and data centers. The foreignand domestic private banks were aggressivelymaking their presence felt in Indian market. Inthis changing scenario, Roy wondered whetherthe RAC would be able to become the marketleader.

Questions

1. Do you think that the transparent and ethicalbehavior of organizations especially inbanking sector helps in retaining andattracting customers.

2. How does the indisciplined nature of Indorecustomers affect the efficiency of RAC? Whatstrategic decisions should be taken by RACto meet this challenge?

3. Evaluate the existing marketing strategies ofRAC. Suggest a marketing strategyconsidering the divergent customer base ofthe bank.

Case Studies


SWEAT TALE OF SWEET TASTE*

HISTORICAL BACKGROUND

Yummy Foods Ltd. established in 1929, was aUS $458 million conglomerate which had startedits operations in India during the British rule.The main motive for setting it up was to spreadjoy and cheer to children and adults alike all overthe country with its sweets and candies. To giveshape to this idea, a small factory was set up inthe suburbs of Mumbai to manufacture sweetsand toffees. A decade later it was upgraded tomanufacture biscuits as well. Since then,Yummy, the name had grown in all directions,won international fame and had beensweetening people�s lives all over India andabroad. Yummy Foods Ltd. was the largestmanufacturer of biscuits and confectionary foralmost 80 years. In biscuits, they had glucose,milk, sweet and salted, cream, wafer cream,cumin seeds and cheese categories. Inconfectionery, they had a range of toffees, hardboiled candies available in chocolate, mint, colaand tropical fruit flavors. Some of these weredouble layered toffees and centre filled candiespacked in rolls or pillow packs, or had single ordouble twist wrapping.

ABOUT YUMMY FOODS LTD.

Yummy was the producer of the world�slargest selling biscuits and its name symbolizedquality, nutrition and great taste. With reachspanning even the remotest villages of India, thecompany had came a long way since itsinception. With 40 percent share of the totalbiscuit market and 15 percent share of the totalconfectionary market in India, Yummy FoodsLtd. had grown to become a multi million dollarcompany. Over the decades the efforts of theirresearch and development wing had contributedto the manifold growth in various categories.Many of the Yummy�s products, biscuits,confectioneries were the market leaders in theircategory, and had won acclaims and awards atthe Monde selection, since 1971. The immense

popularity of Yummy�s products in India wasalways a challenge to their production capacity.Now using more modern techniques for capacityexpansion they had begun spreading their wingsand were going global. Yummy biscuits andconfectionaries were fast gaining acceptance ininternational markets such as middle east Africa,south east Asia and the more sophisticatedeconomies like USA, U.K., Canada, Australia andNew Zealand.

As part of the efforts towards a larger shareof a global market, Yummy Foods Ltd. adoptedHazard Analysis Critical Control Point (HACCP)quality safety process from Denmark, especiallyapplicable for food Industries. The company alsoinitiated the process of getting ISO 9000certificates. It had the state of the art machinerywith automatic printing and packaging facilities.Their biscuit baking oven was the largest of itstype in Asia. Apart from the factories in Mumbaiand Bangalore, Yummy Foods Ltd. also hadfactories in Haryana and Rajasthan which werethe largest biscuits and confectionary plants inthe country. In all Yummy Foods had 7manufacturing units and 51 manufacturing unitson contract.

CONCEPT OF CMU

Contract Manufacturing Unit (CMU) was theoutsourcing of a requirement to manufacture aparticular product or component to a third party.Contract manufacturing enabled companies toreduce the level of investment in their owncapabilities to manufacture, while retaining aproduct produced to a high quality, at areasonable price, and delivered to a flexibleschedule. Companies usually seek the servicesof a contract manufacturer because they wantthe benefits of having a manufacturing operationwithout the overhead cost. By outsourcingmanufacturing to a company that had theknowledge and expertise to produce a qualityfinished product, a company could focus on

*This case was developed by Ajit Upadhyaya, Akanksha Shah (Prestige Institute of Management and Research, Indore),Rajeev Shukla (SVITS, Indore) and Digambar Negi (SVIM, Indore) during the Twenty First National Case Writing Workshoporganized by Prestige Institute of Management and Research, Indore in collaboration with Association of Indian ManagementSchools (AIMS), New Delhi on May 7-9, 2009.


79

other aspects of business, including branding,marketing, and selling their finished goods.

While there were numerous benefitsassociated with using a contract manufacturer,there were many other factors to be consideredwhile searching and choosing the right contractmanufacturer. When evaluating contractmanufacturers, a customer needed to choose onethat complied with the FDA�s goodmanufacturing practices (GMPs) for food anddietary supplements. However, in case ofYummy Foods CMUs, all the parameters ofquality control of raw material and productsalong with the manufacturing processparameters were closely supervised by companydeputed special supervisors who were on thepay roll of Yummy Foods and deputed at CMUsite to look after productivity, quality and safetynorms.

The supervisors also acted as the coordinatorsfor arranging required raw materials to CMUs.Yummy Foods Ltd. used Data ManagementSystem (DMS) and Material ManagementSystem (MMS) for their material managementin which the company deputed supervisor/purchase manager who were required to makedata entry of daily stock positions at CMUs. MMSdirectly connected the CMUs with centralizedmaterial procurement system located at Mumbaifrom where the supplier of materials to CMUsgot information about the material requirementplans.

The above practices were similarly followedat Yummy Foods Ltd. CMU in Indore, MadhyaPradesh. Operation of the CMU was to convertthe raw materials provided by Yummy FoodsLtd.. into finished products of their specifiedstandards. For this conversion process, CMU gotpayment on specified conversion basis. The ratioof raw materials used and waste percentage ofconversion process was specified by YummyFoods Ltd. But if consumption of materials orthe waste generation exceeded the specified limit,then it was to be borne by CMU. CMU had toarrange manpower and all other productionrequirements other than raw material and

packaging items which were provided byYummy Foods Ltd. Production of biscuits andconfectionary required specialized technologyand equipment. Other supporting processesoperations were carried out by unskilled or semiskilled workers. Production at CMU was on 24X7basis and in two shifts of twelve hours each. Itwas found that workers could not avail weeklyholidays and also there was no concept of anypaid holidays. Any worker who availed holidayfor a day was penalized for his/her two dayswages. There were no canteen facilities in thepremises of CMU for the workers.

The hectic schedule, non-competitive wagesand lack of basic facility multiplied the plight ofthe workers and created turmoil in their personaland family life. However, there were a fewexceptions of internal promotion onperformance basis from helper to shiftsupervisor post in hierarchy. In absence of fullemployee strength in shift, the increasedworkload was shared by the existing workforcewithout any incentives. There were manyinstances of violation of labor laws and humanrights. Despite the employee turnover ratio beinghigh, the CMU was least concerned as theoperation required semi-skilled workers, whichwere readily available in the open market. AsYummy Foods Ltd. received products in timeand as per their specified quality requirements,so they did not interfere into this matter in theCMU.

Questions

1. Keeping in mind the violation of labor lawsand human rights, do you think that the standtaken by Yummy Foods Ltd. is justified?

2. What strategies do you suggest to overcomethe labor turnover problem?

3. Suggest the ways to motivate the employeesof the CMU to achieve higher levels ofProductivity?

4. What initiatives government can take to putin order the employees problems?

5. Comment on the role of labor Union in theabove situation.

Case Studies


COMPENSATION (VIII ED.) by Milkovich, George and Jerry Newman(2008). USA: McGraw Hill. pp 634, Price Rs. 575.

Compensation and reward system is one ofthe most challenging processes for humanresource management department. It is greatlyaffected by the corporate and human resourcestrategies. High diversity of interests is observedamongst the promoters, management and theemployees with regard to compensation.Promoters� view is conservative, management�sis optimum and motivating, whereas, employeesexpect maximum compensation. At one handemployees� motivation, satisfaction and qualityof life is directly connected with the levels ofcompensation and on the other hand, cost ofproduction and organisational competence in theindustry depends upon the level ofcompensation. Organizations providing higherlevels of compensations also enjoy unique andhigh position of their brands. This also enablesthem to attract and retain talents. The bookCompensation has eighteen chapters which runthrough six hundred and thirty four pages. Firstedition of the book was published in 1984. Sincethen, eight editions with nineteenth reprint in2005 have been released, proving the merit ofthe book. Apart from first two chapters, whichdeal with the compensation models and strategicchoices in United States and also across the globe,the book is divided into six parts.

These six parts are labeled as InternalAlignment: Determining the Structure; ExternalCompetitiveness: Determining the Pay Level;Employee Contributions: DeterminingIndividual Pay; Employee Benefits; Extendingthe System and Managing the Systemrespectively. Macro analysis in first two chaptersare creating knowledge about the application ofcompensation models and considerations forinternal and external conditions. The first parttitled Internal Alignments: Determining theStructures is having four chapters from third tosixth. Chapter III is Defining InternalAlignments, which deals with strategic choicesand organisational structures. It is micro aspectof organisational structure comprising of levels,differentials and consequences of structures inrelation to compensation and overall humanresource policies. It keeps abreast of latest

research pertaining employees� behaviour inrelation to compensation and equity with others.The book outshines with uniqueness by includingtournament theory and institutional models.

Job Analysis as the Chapter IV has alltraditional and fundamental concepts with somenovel approaches such as innovative approachesto optimize satisfaction to either party. Thechapter also deals with job design, particularlyin relation to reliability, validity, acceptabilityand usefulness of the jobs. Evaluating Work asChapter V contains Job Evaluation with methodsof job evaluation such as ranking, classificationand point method in detail, as well as externalmarket analysis and balancing chaos. PersonBased Structures is the Chapter VI justifying withcontribution and performance of employees onthe basis of introducing skill based plans. It alsodeals with skill analysis with certification methodand contemporary research on skill-based plans.Part two of the book is titled ExternalCompetitiveness Determining the Pay Level andhas two chapters, Chapter VII and VIII, whichdescribe the impact of competition oncompensation, determining levels ofcompensation and pay structures. Thesituational and strategic aspects such as demandof the labour, marginal products and revenueare comprehensively dealt. The book describescompetitive pay policies such as matching lead,lag, flexible and pitfalls of price policies.

Employee Contribution: DeterminingIndividuals as third part has three chapters. Theydeal with individuals� contribution and reward,pay for performance and team based pay plans.They also comprehensively discuss employees�stock ownership plans (ESOPs), broad basedoption plan (BBOPs), performance unit andperformance share. Performance appraisalsparingly apportions the role in the process ofcompensation management. Part four EmployeeBenefits dispensed with employer-employeepreferences and value benefits. It also apportionsadministration policies and procedures for thebenefits. Chapter XIII is crafted with the legalaspects, retirement saving plans, life insurance,

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medical and related security benefits. Extendingthe System is the fifth part of the book whichconsists of three chapters from XIV to XVI.Chapter XIV is titled Compensation of SpecialGroups describes compensation for differentgroups such as supervisors, corporate directors,executives, scientists and engineers in hightechnology, sales force, contingent workforceand managerial personnel. Chapter XV talksabout Union Role in Wage and SalaryAdministration and describes the impact ofunion in wage administration and alternativereward systems.

Chapter XVI is titled International Pay Systemit describes various cultures and their impact onpay system. This chapter distinguishes the bookfrom other books because of its global scope. Thechapter also focuses on employee involvementat managerial autonomy i.e., empowermentissues. It also highlights national pay system ofJapan and Germany. It also discusses borderlesspay system and elements of expatriatecompensation and expatriate system etc.Managing the System is the sixth part andconsists of two chapters XVII and XVIII. ChapterXVII it focuses on Governmental and legal issuesin compensation. The intervening laws viz.Labour Standard Act 1938, Prevailing Wage Lawsin America. Pay Discrimination, Equal Pay Act,Civil Rights Act 1964, Civil Rights Act 1991, PayDiscrimination and Dissimilar Jobs and Earning

Gaps. also dealt with comprehensively. Lastchapter of the book Budgets and Administrationdiscusses total pay models, labor costs, bottomup and top down approaches for salary controland the role of change agents in restructuringcompensation functions. Undoubtedly the bookis having a global scope in its applications as itcomprehensively deals with almost all thedomains of compensation and broadly withtraditional as well as innovative aspects. Manyof the innovative approaches, almost in all thechapters, make the book unique. InternationalPay Systems of chapter XVI is a unique feature,which is quite useful to Transnational andMultinational Corporations. Each chapter alsotakes account of current research findings.

For improving applicability of the knowledgeeach chapter possesses real world problemsunder the heading of Your Turn. The book iscomprehensive thus, may be used as a referencebook. Though from the point of view of theapplicability in India the book has somelimitations due to its American legal architecture.

Rajesh JangalwaAssociate ProfessorPIMR Indoreand

Vinod MishraAssistant ProfessorPIMR Indore

ELEMENTS OF MERCANTILE LAW by N.D. Kapoor (2009). Thirty FirstEdition, New Delhi: Sultan Chand and Sons Limited, pp vi + 1127,Price � Rs. 350.

Law in itself is a significant and detailedsubject. Framing, executing and implementingrules and regulation is a constant process andrequires great rigor. Mercantile law is one suchcategory of law which is of great utility forindividuals, business firms and the entireeconomy. It covers a vast arena from contractact, company law to specialized aspects ofindustrial law. N.D. Kapoor is a renowned namein the field of law and has a good hold onpresentation of legal concepts. The book underreview is the thirty-first edition and includes

mercantile law related acts with clarity andsimplicity. The book has been divided into threevolumes. Volume One on Law of Contract includesfour parts. The introductory volume throws lighton elementary aspects of law like � what is law,what are objects of law, what is the need for theknowledge of law, what is the need for theknowledge of law, sources and nature ofmercantile law.

Part One titled General Principles of Law ofContract has twelve systematic drafted chapters.

Book Reviews


Chapter 1 is titled General Principles of Law ofContract. It includes objectives of the law ofcontract, the Indian contract Act, 1872, essentialelements of a valid contract, classification ofcontracts, and classification of contracts inEnglish law. Chapter 2 titles Offer and Acceptanceand it deals with meaning of offer andacceptance, communication process of offer,acceptance and revocation. Chapter 3 is titledConsideration and includes definition ofconsideration, its need, legal rules, etc. Capacityto Contract is chapter 4. This chapter defines whoare the minors, persons of unsound mind, and,persons disqualified by any law in eligible toenter a contract. Chapter 5 is titled Free Consent.It provides insight into meaning of consent andfree consent. The same chapter further deals withconcepts of coercion, undue influence,misrepresentation, fraud and mistakes.

Chapter 6 on Legality of Object throws light onsituations when consideration/ object iscategorized as unlawful. Chapter 7 is on VoidAgreements. It discusses meaning of voidcontracts and void agreements along with theconcept of restitution. Chapter 8 is titledContingent Contracts. This chapter focuses onrules regarding contingent contracts, thedifference between a wagering agreement and acontingent contract. Chapter 9 is on Performanceof Contract. The chapter provides insight intowhat is an offer to perform, which contracts neednot be performed, who should perform thecontracts, time and place of performance, etc.Chapter 10 is titled Discharge of Contract. Thislengthy chapter defines various modes ofdischarge of contracts. Chapter 11 is on Remediesfor Breach of Contract. The chapter deals withvarious possible alternates available for breachof contract such as � rescission, damages, specificperformance, injunction, etc. Chapter 12 is onQuasi Contracts and describes its meaning andtypes.

Part Two of the book deals with SpecificContracts which includes nine exhaustivechapters. Chapter 1 of this part is on Indemnityand Guarantee. The chapter discusses meaningand contracts of indemnity and guarantee, theextent of surety�s liability, kinds of guarantee,rights of surety, discharge of surety, etc. Chapter2 on Bailment and Pledge deals with the meaning

and classification of bailment, duties and rightsof bailor/ bailee, laws relating to lien, finder ofgoods, termination of bailment. The chapterconcludes with meaning of pledge, differencebetween pledge and bailment. Chapter 3 is onContract of Agency. This chapter defines anagency and principal. It lists the norms forcreation of agency, classification of agents,delegation of authority, relaxation of principaland agent, relaxation of principal with thirdparties and other minute details. Chapter 4 of thispart is further sub-divided into five smallerparts. Chapter 4i is on Sale of Goods. It detailsabout the formation of contract of sale, its subjectmatter, price consideration, time element andrelated issues. Chapter 4ii is on Conditions andWarranties. It discusses various kinds / types ofconditions and warranties and the concept of�caveat emptor�. Chapter 4iii is on Transfer ofProperty. The chapter throws light on meaningof property, possession of risk, passing ofproperty, kinds of goods, and sale by non-owners. Chapter 4iv titles Rights of an UnpaidSeller. The chapter defines who is an unpaidseller, what are his rights, remedies for breachof contract of sale and other related aspects.

Chapter 5 is also sub-divided into three parts.Chapter 5i is on Nature of Partnership. It discussesthe meaning and definition of partnership,formation of partnership, test of partnership, etcat length. Chapter 5ii is on Relations of Partners.This chapter provides insight about relations ofpartners to one another and to third parties,property of the firm, types of partners andreconstitution of a firm. Chapter 5iii is onDissolution of Firm. The chapter explains differentways of dissolving a firm, it throws light on theduties, rights and liabilities of a partner ondissolution. Chapter 6 of this part is sub-dividedinto ten parts. Chapter 6i titles NegotiableInstruments. The chapter defines a negotiableinstrument and its types. Chapter 6ii is on Notes,Bills and Cheques. The chapter briefly defines allthe three and discusses some related aspects atgreat length. Chapter 6iii is on Parties to aNegotiable Instrument . It includes detailsregarding capacity of parties, parties to negotiableinstrument, holder and holder in due course andliabilities of parties. Chapter 6iv is on Negotiation.The chapter deals with transfer by negotiation,transfer by assignment, endorsement, instrument

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obtained by unlawful means. Chapter 6v is onPresentment of a Negotiable Instrument. Thechapter throws light on various modes ofpresentment i.e., for acceptance, for sight, forpayment. Chapter 6vi is on Dishonour of aNegotiable instrument. It includes the meaning,notice of dishonour, procedure of noting andprotesting rules as to compensation, etc. Chapter6vii is on Discharge of a Negotiable Instrument. Thechapter defines discharge of an instrument anddischarge of a party. Chapter 6viii is on Rules ofEvidence and refers to basics of estoppel and otherinternational laws. Chapter 6ix is on Hundis andits kinds. Chapter 6x is on Banker and Customer.The chapter defines the role of these two, theirlegal relationships, protection of paying party,etc.

Chapter 7i is on Arbitration, it highlightscontents of an arbitration agreement, itsadvantages and disadvantages, powers ofjudicial authority, composition of ArbitrateTribunal award and appeals. Chapter 7ii is onConciliation and the chapter focuses on issuesrelated to commencement of conciliationproceedings, settlement agreement, terminationof conciliation proceedings. Chapter 8i is titledLaw of Insurance. It discusses concepts relatedto contract of insurance, fundamental elementsof insurance, premium, re-insurance anddouble insurance. Chapter 8ii is titled LifeInsurance. The chapter deals with elements oflife insurance contract, insurable interest, rightsof insurer to avoid life policy, types of lifeinsurance policies, assignment and nomination.Chapter 8iii is titled Fire Insurance and defineselements of the contract of fire insurance,average clause in a fire policy, insurableinterest, fire and loss by fire, rights to insurer,types of fire policies and assignment. Chapter8iv is on Marine Insurance and contains detailsabout the contract of marine insurance,disclosure and representation, principles ofmarine insurance, marine policy, warranties,voyage, premium, losses and other such minuteissues. Chapter 9i is on Carriage of Goods. Thechapter includes basics of carriage by land,classification of carriers, types of goods andcarriage by rail. Chapter 9ii is on Carriage by Seaand emphasizes on contract of affreightment,charter party and sea transport relateddocuments. Chapter 9iii is on Carriage by Air.

Part Three of the book is on Law ofInsolvency. Chapter 1 is titled Law of Insolvencydeals with nature of insolvency proceedings,jurisdiction of insolvency courts, who can beadjudged insolvent, acts of insolvency, stages ofinsolvency, etc. Chapter 2 is titled From Petitionto Adjudication discusses the procedure afterpresentation of petition, order of adjudication,effects of insolvency on antecedent transactionsand schemes of composition and arrangementare at length. Chapter 3 is titled Property and Debtsof Insolvent. This chapter describes detailsregarding property of insolvent, debts ofinsolvent, distribution of insolvent property,declaration and distribution of property, etc.Chapter 4 is titled Discharge of Insolvent. Thechapter provides insight about application fordischarge, refusal of unconditional discharge,small insolvencies, appeals and penalties.

Part Four is titled Latest Laws. Chapter 1 ofthis part is titled The Consumer Protection Act,1986. It defines the various consumer protectionbodies functioning in India along with their rolesand responsibilities. Chapter 2 is titled The ForeignExchange Management Act, 1999. The chapterdefines basic concepts and issues related to forexmanagement in India like � regulation andmanagement of forex, authorized person,contravention and penalties, adjudication andappeal, etc. Chapter 3 is titled The InformationTechnology Act, 2000. The chapter focuses onissues related to information technology andrelated laws. It provides a great deal ofinformation on digital signature and electronicsignature, electronic governance, attribution,acknowledgement and dispatch of electronicrecords, regulation of certifying authorities,duties of subscribers, penalties, compensationand adjudication norms, offences, etc. Chapter 4is titled The Competition Act, 2002. This chapterprovides insight about prohibition of certainagreements, abuse of dominant position,Competition Commission of India, duties,powers and functions of commission, duties ofDirector General, penalties, competitionadvocacy and related concepts.

Volume Two is titled Company Law. Thisvolume is further divided into sixteen chapters.Chapter 1 is titled Nature of Company. It defines acompany, its characteristics, company law in

Book Reviews


India, how is company different from apartnership, etc. at length. Chapter 2 is titledKinds of Companies. This chapter simply classifiescompanies on basis of � incorporation, liability,number of members, control and ownership.Chapter 3 is titled Formation of a Company. Itprovides details regarding electronic filing ofform, incorporation of company, certificate ofincorporation, promoter and related aspects.Chapter 4 is titled Memorandum of Association. Itdiscusses fundamental documents, contents ofmemorandum and alteration of memorandum.Chapter 5 is on Articles of Association. The chapterthrows light on contents of articles, alteration ofarticles, relationship and difference betweenarticles and memorandum, legal effects of thetwo, etc.

Chapter 6 is titled Prospectus. It briefs aboutmeaning of registration, shelf prospectus, draftoffer document, contents of prospectus, offer forsale, misstatements in prospectus and theirconsequences. Chapter 7 is titled Membership in aCompany. The chapter provides insight aboutmembers and shareholders, procedure forbecoming a member, their eligibility, cessationof membership and defines the rights andliabilities of members. Chapter 8 is titled ShareCapital. The chapter discusses about kinds ofshare capital, alteration of capital, reduction ofcapital, re-organisation of capital and votingrights. Chapter 9 is titled Shares and defines stocksand shares. It then deals with types of shares,procedure for allotment, SEBI guidelines forallotment and issue of shares, over subscription,transfer of shares, forfeiture of shares and manymore important aspects. Chapter 10 is titledCompany Management. This chapter discussesabout the role of director/s in management of acompany. It highlights aspects like appointment,positions, number of directorships, theirdisqualifications, their remuneration, duties andpowers, their liabilities, etc. at length.

Chapter 11 is titled Meetings and Proceedings.The chapter briefly discusses the procedure ofgeneral meetings, requisites of a valid meeting,procedure for voting and poll and resolutions.Chapter 12 is titled Borrowing Powers, Debenturesand Charges. The chapter deals with basics ofdebentures, their types, mortgages, ultra-viresborrowing, and registration of charges. Chapter

13 is titled Accounts and Auditors. The chapteremphasizes on significance of accounting andbook keeping from legal point of view. It furtherdefines accounts, statutory books, annualaccounts and balance sheets, procedure for filingof accounts with the registrar. The chapterconcludes with appointment criteria for auditors,rights, powers and duties of auditors. Chapter 14is titled Prevention of Oppression andMismanagement. This chapter highlights theprovisions that prevent opposition and mis-management in a company. It also enumeratesthe powers of Company Law Board and centralgovernment in this regard. Chapter 15 is titledCompromises, Arrangement and Reconstruction. Itfocuses on the concept of compromise, re-construction and amalgamation of companies innational interest. The last chapter of this volumetitles Winding up. It defines the meaning ofwinding up, various modes of winding up acompany, winding up by court, powers of court,consequences of winding up, winding upprocedure and other related minute details.

Volume Three deals with Industrial Law. Thisvolume has fifteen chapters divided into six sub-parts. Part One is titled Working Conditions.Chapter 1 is titled The Factories Act, 1948. Thechapter provides a very detailed view aboutmeaning of factory, approval, licensing andregistration of factories, the inspecting staff.Health, safety, hazardous processes and welfarerelated issues are specially highlighted in thischapter. The chapter also enumerates provisionsand procedures regarding employment of youngpersons, women, leave provisions with wagesand penalties. Part Two is titled Social Security.Chapter 2 is titled The Workmen�s CompensationAct, 1923. This chapter provides insight aboutscope and coverage of the Act, rules regardingworkmen�s compensation, amount anddistribution of compensation and enforcementof the act. Chapter 3 is titled The Employee�s StateInsurance Act, 1948. The chapter lays emphasison applicability of the Act, Employee�s StateInsurance Fund, contributions and benefits,other schemes under this Act and adjudicationof disputes and claims. Chapter 4 is titled TheEmployee�s Provident Fund and MiscellaneousProvisions Act, 1952. This chapter provides insighton applicability of the Act, Employee�s ProvidentFund Scheme (1952), Employee�s Pension

85

Scheme and Fund (1995), Employee�s DepositLinked Insurance Scheme and Fund (1976),administration of all these schemes.

Chapter 5 of this volume is titled The Paymentof Gratuity Act, 1972. it defines payment,forfeiture, determination, recovery of gratuity,norms related to nomination, penalties andoffences. Chapter 6 is titled The Maternity BenefitAct, 1961. The chapter very briefly highlightsscope and coverage of the Act. Chapter 7 is titledThe Payment of Wages Act, 1936. The chapterexplains the extent, applicability andenforceability of the Act, rules for payment ofwages. Chapter 8 is titled The Minimum Wages Act,1948. The chapter defines the object of the Act,procedure for fixation and revision of wages,offences and penalties, etc. Chapter 9 is titled TheIndustrial Disputes Act, 1947. This lengthy chapterdeals with objects and extent of the Act. Thechapter further enumerates procedure forsettlement of Industrial disputes, and authoritiesunder this Act, procedure, powers and duties ofauthorities, reference of disputes to boards,courts, tribunals, voluntary reference, referenceto national tribunal, award and settlement,strikes and lockouts, lay offs and retrenchments.Chapter 10 is titled The Industrial Employment(Standing Orders) Act, 1946. The chapter focuseson object, scopr and application of the Act.

Part Five titles Worker�s Organisation. Chapter11 is on The Trade Unions Act, 1926.it deals withTrade Unions, their registration, cancellation andappeal procedures. The chapter also enumeratesrights, duties, privileges and liabilities of aregistered trade union and other related issues.Part Six titles Bonus and Chapter 12 is titled ThePayment of Bonus Act, 1965. The chapter definesbonus, discusses eligibility, dis-qualification forbonus, determination of bonus, penalties andoffences liable under the Act. The book concludeswith Part Seven on Miscellaneous Acts. Chapter13 is titled The Apprentices Act, 1961. This chapter

defines with the meaning of Apprentice,Apprentices and their training, obligations ofemployers, penalties and related offences.Chapter 14 is titled The Employment Exchanges(Compulsory Notification of Vacancies) Act, 1959.The chapter throws light on application andscope of the Act, notification related to vacancies,etc. Chapter 15 is titled The Collection of StatisticsAct, 2008. The chapter deals with collection ofstatistics It briefly lists provisions for disclosureof information, restrictions on use of information,power in respect of core statistics, penalties andoffences.

The book under review is extremelyinformative, crisp and concise as regards aspectsof Mercantile Law. The author has very preciselydrafted the chapters and has provided a lot ofreview questions and exercises at the end of eachchapter. As compared to its previous editions,this edition has a lot of new topics which arebriefly discussed. Easy language and simpleexplanation are key strengths of the book. But,at the same time, the book does have somelimitations regarding its poor printing and anumber of grammatical and spelling mistakes.Two parts namely Part Three and Four aremissing in the Volume Three. They do not findany mention in the chronology of chapters.Certain chapters exhibit too much of informationand thus creating a chaos for readers ofdisciplines other than law. Inspite of this, theauthor needs to be appreciated for compilingthese different and tedious acts in this (31st)edition. The book can be referred for insightsinto company law and contract act bymanagement students (BBA and MBA). It isextremely helpful for students of law, at bothunder graduate and post graduate level.

Amrita ThakreAssistant ProfessorPIMR, Indore

Book Reviews


HUMAN RESOURCE DEVELOPMENT by Naga Raju Battu (2011). NewDelhi: APH Publishing Corporation, pp. 272, Price: Rs 195/-.

In the global environment of competition, theorganizations have increasingly realized theimportance of human resources for sustainablegrowth and success. The rise or fall of anyorganization depends upon their peoplecapabilities, skills and motivation. Thus, as rightlymentioned by the author, human resource is acritical factor in the economic development ofany country and its institutions. In the preface,author highlights the importance of humanresource development as the primary process forachieving the full potential of individual andorganizational growth over time. This book is aresult of empirical study done on HRD climatein a private sector organization in India.

In this book, author has emphasized theimportance of generating congenial HRD climatebefore carrying out HRD plans as it acceleratesHRD process and self development ofemployees. The author in this book has presentedhis research on HRD Climate in Agrigold, an agrobased emerging private sector unit in AndhraPradesh. The aim of the present study is to assessthe quality of HRD climate in the organizationunder study. Thus, the whole book is writtenfrom a researcher �s perspective. Author hasorganized his research into six chapters followedby bibliography and index.

The Chapter I lays down the conceptualframework for HRD. It begins with a briefintroduction stressing the importance of humanresources for the organizations. It presents thecurrent problems, challenges and opportunitiesin HRM due to changing demographics of theworkforce, fast changing technology andunpredictable business environment. Itdifferentiates HRM from personnel managementand highlights the significance and changing roleof HRM. He also gives the credit to proper HRMin effectively managing the change in theorganizations. The author then gives an in depthdescription of the concept of HRD. He arguesthat it is only competent and motivated peoplewho can make things happen so theorganizations should continuously strive towardsensuring enhanced dynamism, competency,

motivation and effectiveness of its employees.The author beautifully describes the history andthe trends in the evolution of HRD. The chapteralso throws light on the aims, goals, need,benefits, constraints, philosophy, future and roleof HRD in the economic development of anation.

Chapter II is titled Problem and Methodologyand presents a review of literature on HRD andHRD climate. It also describes the threedimensions of HRD climate i.e., general HRDclimate, OCTAPACE culture andimplementation of HRD mechanisms. Theconcept of HRD climate is beautifully discussedright from its origin in 1980�s by T.V. Rao andAbraham to its present state. Various studies onHRD climate in India are also sequentiallypresented to give better insights andunderstanding of the concept. The chapter thenoutlines the research methodology followed inthe study. The research design, objectives,sampling, data collection and limitations of thestudy are discussed in detail followed by thereference section. The survey used the 38 itemHRD climate survey instrument development byT.V. Rao in 1986 using a five point scale.

Chapter III of the book gives a brief overviewof the organization under study i.e., Agrigoldfarms Limited. It presents the various divisionsof the organization, the departmental structure,future projects, publications, market segmentand the product selling plan of the company.Chapter IV is titled as Human ResourceDevelopmental Climate in Agri-Gold. Thechapter describes the concept of HRD and thattoo exactly in the same way as it has been donein previous chapters. It again describes the studywhich has already been discussed in Chapter II.

Chapter V presents the analysis of theperceptions of sample managers, supervisors andworkers on the human resource developmentclimate prevalent in the organization understudy. It presents the item wise analysis of theresponses and reports the mean score of each ofthe item. Data has also been presented graphicallyfor better understanding. The mean score of the

PIJMR, Vol. 3(2), July 2010 & Vol. 4 (1), January 2011 BOOK REVIEWS

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HRD climate in the organization was reportedto be average (3.39) leaving ample scope forimprovement. Chapter VI embodies theconclusions based on the data analysis andinterpretation made in the last chapter. Basedon the analysis author gives some important anduseful suggestions to improve the variousdimensions of HRD climate in the organizationunder study. Data is analyzed on the basis ofmean scores only. Some new statisticaltechniques would have been applied to add morevalue to the research.

This book has undoubtedly contributed muchto enhance knowledge in the area of humanresource development especially, for theresearchers. However, the language used is notvery good. Grammatical and typing errors arein abundance. There has been unnecessaryrepetition of some concepts. Some of the

sentences are framed so vaguely that it is difficultto construct a meaning out of it. The task ofproof reading seems to be weak. Thus, there isample scope for improvement in the successiveeditions of the book. Despite certain weaknesses,the book is recommended to the scholars andstudents of HR as it presents a useful researchframework in the field of human resourcedevelopment.

Richa ChaudharyResearch Scholar in Departmentof Management Studies,IIT Roorkee, Indiaand

Santosh RangnekarAssociate Professor in Departmentof Management Studies,IIT Roorkee, India

INDIAN FINANCIAL SYSTEM by H.R. Machiraju (2010). New Delhi:Vikas Publishing House Pvt. Ltd., Fourth Edition, pp.458+xvi, Price Rs 295.

The Indian Financial System comprises ofintermediaries, the markets, the instruments andthe institutional framework along with itsassociated practices. The advent of liberalizationin 1992-93 integrated the different componentsof financial markets like the foreign exchange,money and the capital markets and facilitatedgreater liquidity. This, in turn, led to an effectiveimplementation of the monetary policy, capitalmarket policy and the management of foreignexchange.

The liberalization of the financial marketsfeatured deregulation of interest rates andremoval of quantitative restrictions. This hasbeen the hallmark of the effort undertaken bythe central bank to manage short term interestrates to improve the take-off of credit andinvestment in the economy. The ultimate aim ofthe financial system is not merely to improveefficiency in allocation of given resources, but,to promote growth. Equitable economic growthcan be promoted by financing viable activitieswhich add to output either directly or throughself groups. The resilience of the financial system

depends on how well we maintain and reducethe government deficit and allow the privateorganizations to garner resources for their growththrough well qualified means.

The book under review on Indian FinancialSystem by H. R. Machiraju is the Fourth Editionof a fairly successful book which had itsinception in the year 2000 and was revised inthe years 2002 and 2007. According to the author,the book differs from its previous editions interms of the wide-ranging assessment of thefinancial sector and the International financialcrisis, Basel II guidelines, microfinance andstudies focusing on the demise of investmentbanks in the US. A note on the role of capitalmarket in project finance has been included inthe current edition.

The book consists of 19 chapters, 71 tables, 7figures, 8 statements and 1 chart. The chaptersare ably supported at the end with questions andfurther reading references. Though clear linesof demarcation is not present in forms of Part I,Part II, etc; still, we can divide the given chapters

Book Reviews


in four broad parts. Part I consisting of Chapter1 and 2 is focused on the introductory aspects ofIndian financial system. Part II consisting ofchapters 3 to 10 is focused on the bankingscenario in India whereas, Part III consisting ofchapters 11 to 18 has the different markets andtheir regulation in its purview. Part IV consistsof chapter 19 and is focused on the publicfinancial administration in India.

Chapter 1: An Introduction to the Indianfinancial system, provides an overview of thefinancial system and the markets. It also talksabout the international financial crisis of 2008 andits affect on India. Chapter 2 is titled savings andfinancial intermediation, covers savings in Indiancontext and payment and settlement system.

Chapter 3 is commercial banking which takesus through risk management in banking, theirclassifications, capital adequacy, SLR, CRR,prudential norms in banking and reforms.Chapter 4 focuses on Reserve Bank of India andtalks about Central Banking and provides anintroduction to the central bank of India and itsfunctions. Chapter 5 focuses on regional ruralbanks; Chapter 6 is on Cooperative Credit, andChapter 7 is development banking andadequately cover the social and developmentbanking segments, viz., rural banking, co-operative banking and development financialinstitutions. The definition, norms andregulatory framework for NBFCs is covered inChapter 8 which based on Non-Bank FinancialCompanies. The downfall of investment bankingin US is the major topic covered in Chapter 9entitled Investment Banking. This chapter alsodifferentiates between the role of merchantbanking and investment banking. The Chapter10 on merchant banking, talks about the originsof merchant banking in India, definition,regulation and their functions. A note on generalobligations and responsibility of merchantbankers is also included in the chapter.

Chapter 11 is on mutual funds and is a treatiseon the Mutual Fund sector in India. Covered inthis chapter are the types of mutual funds,returns, accounts, regulation, structure,performance evaluation and guidelines for theiroperations. The most exhaustive and longestchapter in the book is Chapter 12 i.e., SEBI and

regulation of primary and secondary markets.In addition to a thorough coverage of SEBI, itsorigin and role; the chapter has guidelines onalmost all the operations and instruments in theprimary and secondary market. Chapter 13 dealswith money markets and provides a generalreading on money market, its instruments andtrading. Chapter 14 is based on foreign exchangemarkets and is another meticulously plannedchapter dealing with foreign exchange rates andtheir determination, spot and forward marketsin India, cross rates, risk and hedging, etc.

Chapter 15 on primary markets, provides aninsight into the different instruments viz., equityshares, preference shares, debentures, etc., theircredit rating and the public issue process. A noteon venture capital is included in the chapter.Chapter 16 is on secondary market: stockexchanges their origins, their functions,regulations, trading and surveillance. A briefintroduction about BSE, NSE, OTCEI and thedepository system is also included in the chapter.Chapter 17 is about foreign investment and itsregulations and talks about the flow of FDI intoIndia via FIIs and NRIs while the Chapter 18accesses International Capital Markets, dealswith external commercial borrowings andsyndicated loans. Chapter 19 is on the IndianFiscal System and is the last chapter of the bookwhich provides an insight into the financialadministration of public finances by thegovernment through the mechanism of financecommissions. The thirteenth financecommission (2010-2015) has its role cut out in thefinancial system, that of deciding between theshare in national taxes of the government of Indiaand the state governments. It has also to takeinto consideration the impact of introduction ofGoods and Services Tax (GST) in India. Lastly,the chapter discusses the annual budget of theGovernment.

The book is a worthy competitor to the leadingbook in the subject � Indian Financial System byM.Y. Khan (2007), Tata McGraw Hill PublishingCompany Limited, New Delhi, ISBN: 0-07-061643-4 due to its exhaustive coverage of thesubject at hand. However, it lacks summary atthe end of the chapters which is sorely missed.It also lacks detailed coverage on issues such asinsurance, derivatives markets and commodity

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markets. Though the book covers almosteverything else in the Indian financial system,what it further lacks is comprehensivenumericals and their solutions. Real life casesfrom the Indian financial scenario, if included,would have made the book more interesting forits readers. Overall, the book is a lucid work and

is worthy of being a text in the subject of Indianfinancial system.

Kapil AroraAssociate ProfessorPrestige Institute of Managementand Research, Indore

INDUSTRIAL RELATIONS AND LABOUR LAWS by (2009). New Delhi:Sultan Chand and Sons, pp 328, Price, Rs. 250.

With technological advancements, factorysystem gradually started emerging. The ownersprovided machinery, means of production andpremises and the workers supplied their labour.This led to the emergence of two distinct classeson the industrial scene, namely the capitalistclass and the working class. The capitalist classbecame more powerful as it provided the mostimportant input for production. With theIndustrial revolution, in Europe and itssubsequent impact on the entire globe, thescenario changed considerably. The governmentcame in the scene for regulating the workingconditions of employees who had littlebargaining power. Further, the changes in thetechniques and methods of production, workmethods, supply of better skilled workers etc.changed the complexion of industrial relationsconsiderably. The book under review has twoparts viz., Part A (Industrial Relations), Part B(Labour Laws).

Part A consists of nine chapters which discussissues like industrial relations, trade unions,labour welfare, worker participation to name afew. Chapter I, talks about Industrial Relationsand Industrial Disputes in India, highlights themeaning, nature, approaches to IndustrialRelations (I.R.). In this chapter, conditions forgood industrial relations have been discussedalong-with the causes and effects of poorindustrial relations. I.D. Act, 1947 has beendiscussed in context of meaning of IndustrialDisputes and forms of disputes. In this chapterhistory of labour disputes in India, causes ofdisputes, and various methods for the preventionand settlement of Industrial Disputes have beenstated. The meaning consequences of illegal

strike and lockout have been also mentioned.Layoff, retrenchment have been discussed underI.D. Act, 1947. Three-tier machinery for thesettlement of labour disputes by NationalCommission on Labour is also included in thechapter.

Chapter II, discusses Trade Unions andthrows light on definition, nature scope of atrade union, trade union theories, need for tradeunions, functions of trade union. Trade unionstructure, historical development of trade unionin India, obstacles in the growth of strong tradeunionism and Trade union Act, 1926 has beendiscussed. Author has highlighted the future oftrade union in India and ILO�s objectives andfunctions in the chapter. Chapter III deals withCollective Bargaining. It throws light onmeaning, structure, benefits, and conditionsessential for success of Collective Bargaining (CB)and how CB works. This chapter discusses thequalities of negotiating teams, types ofnegotiating procedures and scene of collectivebargaining in India. Chapter IV, Grievance,highlights the meaning, causes, and effects ofgrievances. This Chapter has presentedmachinery for handling grievances and modelgrievance procedure.

Chapter V, discusses Employee Disciplineand explains the meaning, causes of indisciplineand essentials of good disciplinary system. Thischapter also discusses kinds of punishment,Indian law on punishment which is coveredunder the industrial Employment (StandingOrders) Act, 1946, Payment of Wages Act, 1936,I.D. Act, 1947. Chapter VI consists of EmployeeCompensation. It highlights characteristics of

Book Reviews


good compensation plan, factors affecting wagesat the micro level, meaning and major steps injob evaluation. The author has also discussedmethods of job evaluation in detail andelaborated incentive compensation. Underincentive compensation author has highlightedkinds of incentive compensation plans. In thischapter, requisites for the success of an incentiveplan, behavioural performance management,wages in India, National Wage Policy have beenmentioned along-with present position of salariesin India. Certain factors have been mentionedon which executive compensation is based.

Chapter VII, Labour Welfare and SocialSecurity, presents meaning, principles, types oflabour welfare. This chapter also describescauses, consequences of accidents and newtechniques in accident prevention. Benefits ofcounselling and mentoring along-with labourwelfare in India have been mentioned in thischapter. Factories Act, 1948, E.S.I. Act, 1948,E.P.F.and Misc. Provisions Act, 1952, TheMaternity Benefit Act, 1961, The Payment ofGratuity Act, 1972, The Industrial Disputes Act,1947 have been discussed briefly. Chapter VIII,is on Worker Participation in Management. Itpresents meaning of worker participation,methods of worker participation in management(WPIM) in India including WPIM in Tata Steel.This chapter also highlights the participation ofworkers in Management Bill, 1990 with itscriticism, alternative approaches to participationwith their merits and demerits.

The next chapter, Chapter IX, discussesIndustrial Relations in Great Britain and U.S.A.It talks about the growth, regulation of terms andconditions of employment, collective bargaining,conciliation, voluntary arbitration andadjudication etc. in Great Britain and U.S.A.

The second part of the books namely Part Bconsists of fifteen chapters. It talks aboutFactories Act, workmens compensation Act, EPFAct to name a few.

Chapter I, elaborates The Factories Act, 1948its meaning and definitions of various terms ofthe Act. It highlights approval, licensing andregistration of factories, notice by occupier,general duties of the occupier andmanufacturers, appointment, powers of

Inspectors along-with appointment and dutiesof certifying surgeons. In this chapter, authorhas discussed health, safety and welfareprovisions in detail and working hours of adults,spread over, night shifts, overlapping shifts, extrawages for overtime, notice of periods of workfor adult workers, holidays. This chapter alsocovers employment of young persons andwomen, annual leave with wages, specialprovisions, penalties and procedure.

Chapter II, coves the Workmen�sCompensation Act, 1923. It throws light on scopeand coverage of the Act. This Act also discussesrules regarding workmen�s compensation, list ofoccupational diseases, and amount ofcompensation for death and permanent total,permanent partial disablement and temporarydisablement. This chapter also discusses methodof calculating monthly wages, distribution ofcompensation, notice and claim andmiscellaneous sections of the Act. Chapter IIIdiscusses Employees� State Insurance Act, 1948,highlights scope, exemptions, definitions andadministration of the scheme. This chapter alsodiscusses finance and audit, contribution,machinery for recovery of arrears and benefitsunder the Act. Adjudication of disputes andclaims, appeals, penalties, miscellaneousprovisions are the part of this chapter.

Chapter IV, focuses on the Employees�Provident Funds and Miscellaneous ProvisionsAct, 1952. It throws light on the application ofthe Act, definitions, Employees� Provident FundScheme (E.P.F.), 1952, Employees� PensionScheme and Fund, 1995, Employees� DepositLinked Insurance Scheme and Fund, 1976 inbrief. In this chapter, clarification pertaining tocontributions and contents about central board,executive committee, powers of inquiry officer,membership and qualifications of a Presidingofficer have been mentioned. Appeals totribunal, orders of tribunal, recovery of moneysby employers and contractors, protectionagainst attachment, priority of payment ofcontributions over other debts, powers ofinspectors including penalties ,offences , andmiscellaneous provisions have been elaboratedin this chapter.

In Chapter V, the authors explains thepayment of Gratuity Act, 1972, its highlights,

91

scope and definitions. The author has alsoexplained rate of gratuity, maximum gratuity,exemptions, forfeiture of gratuity, compulsoryinsurance, protection of gratuity, nomination,determination and recovery of gratuity. In thischapter, appointment of inspectors, powers ofinspectors, penalties and offences underpayment of Gratuity Act, 1972 have beenmentioned. Chapter VI talks about theMaternity Benefit Act, 1961, and throw light onscope, coverage of the Act. This chapterhighlights definitions, maternity benefit, leaveand nursing breaks, powers and duties ofinspectors along-with miscellaneous provisions,penalties and offences.

Chapter VII, consists of the payment ofWages Act, 1936, it highlights, extent ofapplication and definitions of this Act. Authorhas explained rules for payment of wages,deductions from wages, maintenance ofregisters and records, powers and functions ofinspectors. In this chapter, contents aboutclaims, appeal, miscellaneous provisions havebeen mentioned. Chapter VIII, focuses on theMinimum Wages Act, 1948, presents definitions,sections related to fixation and revision ofwages, minimum rates of wages, procedure forfixing and revising minimum wages, advisoryand central advisory board and safeguards inpayment of minimum wages.

Chapter IX, the author discusses theIndustrial Disputes Act, 1947, objects, extent,definitions of the Act. This chapter also explainsauthorities for settlement of industrial disputesand procedure, powers and duties ofauthorities. In this chapter author has explainedreferences of disputes to boards, courts, andvoluntary reference, award and settlement, andsections related to strikes, lockouts, lay-off andretrenchment, including penalties andmiscellaneous sections. Chapter X, discusses theIndustrial Employment (Standing Orders) Act,1946 and presents object, scope, definitions ofthis chapter. Author has explained procedurefor submission of draft standing orders,procedure for certification of standing orders,payment of subsistence allowance, powers ofcertifying officers and appellate authoritiesalong-with miscellaneous sections.

Chapter XI, talks about the Trade Union Act,1926, elaborates definitions, registration of thetrade union, rules of trade union, cancellationof registration and appeal, rights and privilegesof a registered trade union, duties and liabilitiesof a registered trade union. In this chapter,amalgamation and dissolution of trade unions,regulations, penalties have been mentioned.Chapter XII, highlights the Payment of BonusAct, 1965, throws light on object, application,definitions, determination of bonus under thisAct. Author has explained computation of grossprofits of a banking company and other cases,allocable surplus, special provisions with respectto certain establishments. Author has mentionedpowers of Inspectors, penalties, offences,miscellaneous sections in this chapter.

Chapter XIII, talks about the Apprentices Act,1961, discusses scope, coverage and definitionsof the Act. In this chapter nature ofapprenticeship contract, qualifications for beingengaged as an apprentice, contract ofapprenticeship, period of apprenticeshiptraining, number of apprentices for a designatedtrade have been mentioned. Author hasexplained process of termination ofapprenticeship contract, health and safety ofapprentices, hours of work, overtime, leave,holidays of apprentices and settlement ofdisputes. Obligations of employers andapprentices, authorities under this Act, penalties,offences, miscellaneous sections are a part of thischapter. Chapter XIV is about the EmploymentExchanges (Compulsory Notification ofVacancies) Act, 1959. It covers topics likeapplication, definitions notification of vacancies,employer to furnish information and returns,penalties and miscellaneous sections in thechapter. Chapter XV, consists of the Collectionof Statistics Act, 2008, ponders light on objectsand reasons, definitions, collection of statistics,disclosure of information in certain cases andrestrictions of their use, offences and penaltiesand miscellaneous sections.

The author has been successful in presentingextensive material in the field of IndustrialRelations and Labour Laws. The book coversindustrial relations area in an appropriatemanner. It provides a thorough understandingof the concepts of industrial relations and labour

Book Reviews


laws which are applicable in Industry. The authorhas tried to cover the topics on Industrialdisputes, trade union, collective bargaining,workers� participation in management, TheFactories Act, 1948, The Workmen�sCompensation Act, 1923, The E.S.I. Act 1948, ThePayment of Gratuity Act, 1972, etc. Objectivetype questions have been given in chapterswhich are useful for competitive exams also.However, few topics have been discussed very

briefly and some topics could have been furtherelaborated. Cases also find their presence in onlyfew chapters. Overall however the book is usefulfor undergraduate and post-graduate studentsas well as researchers.

Anukool M. HydeAssociate ProfessorPIMR, Indore

KNOWLEDGE MANAGEMENT by Thomas Erickson (2009). New Delhi:Global Vision Publishing House, pp. 344 . Price Rs.2000.

Like water the growing tide of data can beviewed as an abundant, vital and necessaryresource. With enough preparation, we shouldbe able to tap into that pool and ride the waveby using new ways to utilize raw data intomeaningful information. That information, inturn, can then become the knowledge that leadsto wisdom. Knowledge Management (KM) anemerging trend comprises a range of strategiesand practices used in an organization to identify,create, represent, distribute, and enable adoptionof insights and experiences. The book underreview provides a wide coverage and soundunderstanding of the knowledge and its use invarious segments of organization. The author hasnearly touched every aspect related toknowledge and shown how a company can havebetter expertise than its competitors if knowledgeis utilized in a proper way. The book is dividedinto two sections. Section I deals with systemsand strategy in Knowledge Management andincludes six chapters (2-7). Section II deals withplanning and applications in knowledgemanagement and includes five chapters (8-12).Chapter 1 is the Introduction part.

Chapter 2 defines the basic concepts ofknowledge. The idea that knowledge has valueis ancient. In the first century A.D.Juvenal (55-130) stated �All wish to know but none wish topay the price�. After that many authors havedefined knowledge in their own ways. It wasFirestone who related knowledge to businesswhen he noted that �Thought, not money is thereal business capital�. This chapter describes

knowledge market, knowledge organisations,knowledge services, organisational relationshipand certain aspects related to KM like schools ofthought in KM, dimensions of knowledge,knowledge stages and the emerging perspectivesrelated to what is data, information, knowledgeand wisdom. It also deals with developments inmanagement information systems like electronicdata interchange systems, image processingsystems, decision support systems, executiveinformation systems etc. and the relationship ofOLAP systems to a KMS environment using theconcept of data mining tools.

Chapter 3 focuses on knowledge sharingculture, basic types of knowledge in a KMSenvironment, operational knowledge,knowledge acquisitions and usage, problemfinding process, knowledge bases, intranets andextranets, knowledge extraction tools, knowledgemanagement software, data mining software etc.Knowledge is considered as one of the mostimportant aspect now-days. On the technologyfront, the importance given to knowledgeresource is exemplified by the emergence of aspecial type of information system-knowledgemanagement System (Alavi and Leidner2001).Problem finding techniques which includescreative process, brainstorming, synectics,accurate problem definition and idea generatorshave also been described in detail. The realexample of various industries like coopers andlybrand, 3M, London based British petroleumwhere knowledge is utilized to build intellectualassests has also been discussed.

93

Chapter 4 is on knowledge systemimplementation in organisations. The ways toimplement knowledge system in organizationsinclude choosing the appropriate knowledgeorientation, cost justification, selectingappropriate software, factors for evaluating theKM software, search engines, decision tree, jointand rapid application development (JAD & RAD)and implementing successful KMS. This chapterhas described the cost justification for KMSwhere managers, staff and technical workersreceive the knowledge related to new patterns,trend and projections that may lead to new waysof thinking and better decisions.

Chapter 5 defines the concepts of open systemarchitecture, databases-relational, object orientedand multidimensional, data marts, datawarehousing, knowledge mining or knowledgediscovery and current data mining methods. Thischapter has an insight of databases, their typesand how they are being managed. Data martscan provide a starting point for decision makersto discover knowledge that they can usethroughout an organisation. Data warehouseshelp the organisation to become morecompetitive, helps company personnel toidentify hidden business opportunities, improvesproductivity and customer responsiveness tocompany promotions.

The companies using data warehouse asstrategic weapon include Wal Mart, MCI,MasterCard, Bank of America, R&V Insurancein Germany. Data mining has also beendescribed as knowledge held within a company�sdatabase by revealing patterns and trends thatcan suggest improved performance in terms ofgreater customer satisfaction, higher qualityproducts, savings and profits. Data Miningmethods like neural networks, CART, K-nearestneighbor, discriminant analysis and logisticregression with their advantages and limitationshave also been discussed and the current datamining methods which are employed are beinghighlighted.

Chapter 6 deals with networkingenvironment to share knowledge. The chapterincludes the details of Local Area Networks(LAN), wireless LANs, virtual LANs, wide AreaNetworks (WANs), ISDNs, world wide web,

HTML and VRML, origin of network computers,data security procedures. In this chapter thefocus is on the key technologies driving widelydispersed KMS. LAN is designed to support onlyone vendor�s terminal equipment, or it may befor multivendor support. Wireless LANs offeran attractive alternative for those who want toadd new users to corporate LANs and supportmobile workers who telecommute from far flungareas. Virtual LANs are logical groupings ofnetwork addresses organized independentlyfrom the physical networks on which they reside.Related networking technologies like voicemessaging, speech recognition etc are also beenused now-a-days.

Chapter 7 covers the main features ofknowledge economy, information and to namea few communication technologies, humancapital, software and distributed knowledge andinnovation. In this chapter knowledge economyhas been described with its features consideringKE as a Vision. The stress is on �Software� whichis not only computer software but also ofsoftware that may have high initial cost ofproduction but will typically have much lowercosts of replication. There is also a need forfoundation inquiry when both economics andmanagement are concerned.

Chapter 8 highlights the importance of KMSto make strategic planning effective, howstrategic plannings are made, what arecompany�s critical success factors, long and shortrange plans and how knowledge discovery isuseful in environmental awareness analysis. Italso describes how vision, mission, objectives,goals play a great role in describing the strategiesof company. The factors responsible for strategicplanning like problem finding, corecompetencies, critical factors, benmarkings andsoftwares in discovering strategic planningknowledge are also discussed in detail.

Chapter 9 highlights the use of KMS inMarketing. It describes the use of knowledgemanagement in market research and analysis andusing knowledge to price products over their lifecycle. The chapter includes the market mix,customer focus, the factors to be consideredwhile discovering market knowledge like focusof core competencies, market research

Book Reviews


information, development of products andservices, market share, quality of products etc.It also focuses on market strategy and howknowledge of customers can be helpful inselecting marketing strategy.

Chapter 10 is about the application ofknowledge in manufacturing organizations. Thischapter is based on manufacturing operations,TQM, supply chain, KMS in manufacturing,analysis of vendors, buyer, knowledge discoveryto develop an overall purchasing supply chainand knowledge to discover and track qualityproblems. It also includes the broad view ofmanufacturing operations, the focus on TQM,the factors useful in discovering manufacturingknowledge like redesigning, life cycles ofproducts, concept of JIT,WIP flow ofmanufacturing operations and themanufacturing processes of competitors,production planning.

Chapter 11 is about the application ofknowledge in financial organisations. The mainfocus of this chapter is the use of KMS inaccounting and finance. The important factorsin discovering financial knowledge, costaccounting approaches, using knowledge todetermine appropriate costing methods andusing knowledge to manage Investments andmaximize ROI. The key concepts of this chapterare financial management like ROI, capitalturnover, return on sales, inventory turnover,ratios used for calculation assets, liquidity etc.The financial principles based on knowledge ofcompany�s overall operations and the softwaresuseful in discovering financial knowledge.

Chapter 12 highlights the application ofknowledge in human resource sector. The mainfeatures included in this chapter are: role ofknowledge officer, human resource principlesbased on knowledge of organisational personnel,software useful in discovering HR knowledge,wage and salary analysis to resolve company�sHR Issues and utilizing knowledge to resolvework force.

The book has been written in simple and lucidlanguage. It presents information about the useof knowledge in diverse fields of organization.The book contains real example of someorganizations where knowledge management isused to maximize the profits and gain expertisein the particular field. The author has made avalue addition by highlighting the use ofknowledge and its applications in sectors whichare the profit maximization and minimizing losssectors of any organization. The subject indexhelps the reader in saving the time for locating aparticular concept in the book but at the sametime the author has not used much of the pictorialand diagrammatic representations of someconcepts in the book. The book is recommendedfor company managers, professionals and forinformation system personnel.

Aruna B. BhatResearch ScholarDepartment of ManagementStudies, IIT Roorkee, India

and

Santosh RangnekarAssociate ProfessorDepartment of ManagementStudies, IIT Roorkee, India

95

INDEX OF ARTICLES

(Based on PIMR Library)

ACCOUNTING

Mohapatra,P(2009).�Farm Accounting in India :Needs an Accounting Standard �, Indian Journal of Accounting, 39(2),61-68.

Pahuja,S (2009).� Environmental Accounting and Reportiong (EAR) Standards �,Indian Journal of Accounting, 39(2),37-43.

Rixon,D and Faseruk,A (2009).�Valuation in Public Sector Agencies : Impact on Financial Reporting through the Implementation of

International Financial Standard : Focus on Canadian Workers�, Journal of Financial Management and Analysis,22(1),16-27.

Sonara,C K ; Patel,A and Shah,K (2009).�IFRS : Global Perspective�, Indian Journal of Accounting, 39(2),69-75.

ADVERTISING AND PUBLIC RELATION

Agarwal,M and Dang,P J (2009).�Examining Celebrity Expertise and Advertising Effectiveness in India�,South Asian Journal of

Management,16(2),61-75.

Chattopadhyay,T (2009). �The Information Processing of Print Advertisements by Young Urban Women of India�, Management and

Change,13(1),147-168.

Jalees,T and Majid,H (2009).� Impact of Ideal Models Being Portrayed by Media on Young Females�, Paradigm,13(1),11-19.

Nagar, K (2009).� Advertising Effectiveness in Different Media : A Comparison of Web and Television Advertising�,IIMB Management

Review,21(3),245-260.

Nagar,K (2010).� Effect of Deceptive Advertising on Claim Recall; An Experimental Research�, Journal of Services Research,9(2),105-

122.

Srivastava,V and Nandan,T (2010).�A Study of Perceptions in Society Regarding Unethical Practice in Advertising�, South Asian

Journal of Management,�,17(1),61-69.

Tripathi, S and Siddiqui M H (2008).� Effectiveness of Mobile Advertising : The Indian Scenario�,Vikalpa,33(4),47-60.

Verma,S (2009).� Do All Advertising Appeals Influence Consumer Purchase Decision: An Exploratory Study�,Global Business

Review,10(1) 33-43.

Verma,S (2009).� Do Consumer Respond Differently to Advertising Stimuli : An Empirical Study�,South Asian Journal of


BANKS AND BANKING

Almazari,Ahmed Arif(2009).� Banking Competition : An Empirical Study on the Jordanian Commercial Banks�,Journal of

Banking,Information Technlology and Management,6(1),20-42.

Anand,M and Singh J(2008).� Impact of Merger Announcements on Shareholders Wealth: Evidence from Indian Private Sector

Banks�,Vikalpa,33(1),35-54.

Anand,S ; Dangwal and Saklani,K (2009).� Impact of Technology Upgradation on the Functioning of Banks�,Journal of Banking,

Information Technology and Management,6(1),51-79.

Arif,A (2009).�The Impact of Pledged Collateral on Credit Risk : An Empirical Study on the Jordanian Commercial Banks�,Journal of

Banking,Information Technology and Management,6(2),23-43.

Athma,P and Bhavani,O (2009).�Reverse Mortgage Loan of State Bank of India in Andhra Pradesh : An Analysis�, Indian Journal of

Accounting, 39(2),28-36.

Bag,D and Hosamane,M D (2009). �Management of Retail Assets in Banking : Credit Migrations and Default Correlations�,

Prajnan,38(3),147-158.

Bhattacharya,K M and Kulkarni,P R (2009). �Corporate Governance in Banks-Concepts and Issues�, Journal of Banking,Information

Technology and Management,6(1),03-19.

Bodla,B S and Verma,R (2009).� Earning Quality of Scheduled Commercial Banks in India :Bank-Wise and Sector-Wise Analysis�,

Prajnan,38(4),257-284.

Chandrasekhar,M and Sonar,R M (2009). �An Analysis of the Impact of Information Technology on the Productivity of Indian

Banks�, Prajnan,38(1),7-26.

Das S (2009).�Management of Non-Performing Assets in Indian Public Sector Banks with Special Reference to Jharkhand�,Udyog

Pragati,33(1),41-51.

PIJMR, Vol. 3(2), July 2010 & Vol. 4 (1), January 2011 INDEX OF ARTICLES


Deb,M and Chavali,K (2010).�Significance of Trust and Loyalty During Financial Crisis : A Study on Customer Behaviour of Indian

Banks�,South Asian Journal of Management�,17(1),43-60.

Girdhar,S (2009).� Building Relationship Through Internal Customer : A Study of South Asian Selected Co-operative Banks withSpecial Reference to Surat District of Gujrat State �, Pranjana,12(2),84-94.

Gupta,A (2009). �A Talk about the Islamic Banking Movement in India �, Pranjana,12(1),40-50.

Jatana,R (2009).�Impact of NPAs on Profitability of banks�, Indian Journal of Accounting, 39(2),21-27.

Jayaraman,A R and Srinivasan, M R (2009).� Relative Efficiency of Schedule Commercial Banks in India (2001-08) : A DEA Approach�,Prajnan,38(2),111-126.

Jham,Vimi and Khan, K M (2009).� Customer Satisfaction and its Impact on Performance in Banks: A Proposed Model�,South Asian

Journal of Management,16(2),109-126.

Kasidi,F(2008).�Banking Business through SACCOs:Credit Availability Innovations-A Study of Northern Tanzania,2004",Business

Perspectives,10(1),37-58.

Kaur,R and Kaur,V (2009).� Economic Value Addition by Banks: A Study of Public and Private Sector�, Journal of Banking,Information

Technology,and Management,6(2),57-64.

Khare,A and Agarwal,R(2009).�An Approach towards Building Services Brands : The Indian Banking Story�,Pragyaan,7(2),1-7.

Lee,J S (2010).�Globalization and Changing Industrial Relations in Taiwans Banking Industry�, The Indian Journal of Industrial

Relations,45(4),609-621.

Mamgain,P (2009).� Criteria of Selecting Banks by Teachers: A Factor Analytic Approach�, Pragyaan,7(2),45-52.

Manimaran,S(2010). � Linkage between Service Quality and Customers Loyalty in Commercial Banks�, Journal of Marketing and

Communication, 6(1),26-34.

Ponraj,P and Rajendran,G(2009).� Financial Strength as a Performance Indicator for Competitiveness �, Pranjana,12(1),88-99.

Singh,P(2009).� Mergers in Indian Banking : Impact Study Using DEA Analysis�,South Asian Journal of Management,16(2),7-27.

Sinha,R P and Chatterjee,B (2009).� Bank Ownership and Deposit Mobilization; A Non-parametric Approach�, Prajnan,38(3),159.182.

Teply P ;Sekhri,V and Chalupka R (2010).� Modeling Capital Requirements for Operational Risk in Emerging Market

Banks�,Decision(37(1),83-100.

BRAND MANAGEMENT

Farooqi,R (2009).�National Branding : A Study of Indias Brand Equity and Capabilities in Comparision to two other South Asian

Countries�, Pranjana,12(2),51-71.

Khan,B M (2009).�Corporate Brand Management Past,Present and Future�, Pranjana,12(1),21-39.

Mishra,A (2009).� Strategic Brand Management of International Faishion Retailers in South Asia�, Pranjana,12(2),38-50.

Srivastava,M and Kamdar,R M (2009).� Brand Image Formation as a Function of Involvement and Familiarity�, Paradigm,13(1),84-90.

Thomas B J and Sekar P C (2008).� Measurement and Validity of Jennifer Aakers Brand Personality Scale for Colgate Brand�,Vikalpa,33(3),49-62.

CASES

Ali,S S and Dubey,R (2010).�Models for Resource Allocation Decisions : A Case of Liquefied Petroleum Gas (LPG) Cylinder Manufacturing

Company�, AIMS International Journal of Management,04(3),191-206.

Baig,Viqar A (2009). �Working Capital Management as a Key for Value Creation : Case Study of Agribusiness Private Dairy Firms�,

Management and Change, 13(1),45-86.

Bajaj,G (2008).�Tasty Bite Eatables Ltd.�, Vikalpa,33(3),99-109.

Bandopadhyay T and Raghuram,G (2008).�Chilli in Soup �,Vikalpa,33(1),131-139.

Belokar,R M(2009).� Framework for Design and Development of a Competitive Work-Force System(CCWC) Through Axiomatic

Design for Manufacturing Enterprise�, Udyog Pragati,33(3),31-39.

Bhattacharya,S; Momaya,K and Iyer,K C (2009).� Enablers of Sustaining Competitiveness : A Case of Growth Strategies of Top

International Construction Companies�, Global Business Review,10(1),45-66.

Bhattacharyya,B (2009).� Bring Education to Children of Lesser Gods : Bharti Foundations Satya Bharti School Programme�, Management

and Change,13(1),1-30.

Chakravarty,A L (2009).� The Optimal Level of International Reserves:The Case of India�, Prajnan,38(2),81-98.

97

Chandra,H and Tripathi,D T (2009).�Judicious Financial Management Decision on Hospital (Private Ward Infrastructure ) Renovation

boosts Patients Welfare (Happiness) Combined with Profitability: Case Study�, Journal of Financial Management and Analysis

Gogoi,Mintu and Kumar,Brajesh (2010).MBA Students Brand Awareness and Preference with Regard to Branded Laptops : A CaseStudy in NIS Academy,Guwahati�, Journal of Marketing and Communication, 06(1),45-56.

Gopinath,M and Iyengar,S (2010).� Case Study : The Confrontation - An Organizational Flashpoint �, Aweshkar,9 (1),171-181.

Kaushik,A (2009).�Inter-Organisational Systems in a Consumer Packed Goods Network : Case of Godrej Consumer Products Limited

(GCPL)�, Vision,13(1),79-96.

Mahboudi,M and Ananthan, B.R. (2010).Knowledge Management in Pharmaceutical Industries : A Case Study of Select Public

Pharmaceutical Industries in Iran�, Journal of Marketing and Communication, 06(1),35-44.

Malik,B K and Mohanty,S K (2009).Rural Poverty and Child Schooling ; A Case Study of Balasore District,Orissa�, Journal of Education

Planning and Administration, 23 (3),257-282.

Mohanty, M and Tripathy, S K (2009).� HRIS in the Indian Scenario : A Case Study of a Large Organization�, South Asian Journal of


Narayan,B (2009).� People,Welfare and Municipality : A Case of Mumbai Floods�, Pragyaan,7(2),53-63.

Nath,Rupanjali and Bhal, K T (2009).� Exploring Factors for Effective Implementation : A Case Study of Indian Bank�, Management

and Change,13(1),127-146.

Pandey,A C (2009).� Study of Relationship between Brand Perception and Purchase Behaviour of Consumer : A Case of Paint

Industry�,Pragyaan,7(1),18-23.

Pimpa,N (2009).� Learning Problems in Transnational Business Education and Training : The Case of MBA in Thailand,�International

Journal of Training and Development,13(1),19-37.

Raghuram G and Shukla N (2008).�Turnaround of Indian Railways : Increasing the Axle Loading�, Vikalpa,33(2),87-96.

Rai,A K (2009).Service Quality Gap Analysis in Indian Banks : An Empirical Study�, Paradigm, 13 (2),29-35.

Ramaswamy,E A (2009).� Labour-Management Partnership: How to Make It Work?�,Global Business Review,10(1),105-111.

Ravichandran N (2008).�Nadiad Kidney Hospital: Revamping Systems and Processes for Growth�,Vikalpa,33(4),95-110.

Rodriguez,E J and Dominguez,J M (2009).�Comparative Analysis of Operational

Risk Approaches within Basel Regulatory Fram Work : Case Study of Spanish

Saving Bank�,Journal of Financial Management and Analysis,22(1),1-15.

Shakya,R K (2009).� Why Civil Service Reforms fail ? A Case of Nepal�, Administration and Management Review,21(2),40-63.

Sharma,A (2009).� Modernization of Railway Stations in India : A Case for Public-Private Partnership with Special Reference to New

Delhi Railway Station�, South Asian Journal of Management,16(1),102-116.

Sharma,L and Saxena,V (2009).�Impact of Emotional Attachment Between Children and Parents in Rural Market : A Case Study ofChildren and parents in Purchase of FMCG�, Pranjana,12(2),116-121.

Sharma,M and Prashant,A (2009).An Analysis of Performance of the Indian Textile Industry in Quota Free Regime�, Paradigm, 13

(2),98-109.

Shukla,H J (2009).Creating and Measuring Shareholders Value : A Study of Cadila Healthcare Limited�,Paradigm,XIII(1),66-72.

Singh,R; Khanduja,D and Dhull,U (2009).�Changeover Time Reduction using SMED in a Manufacturing Industry: A Case Study�,Udyog

Pragati,33(4),34-40.

Srinivasan,P (2009).� Investment Options of Low Cost Airlines The Case of Spicejet and Ross Funding�, Pranjana,12(1),124-130.

Srivastava P and Bhatnagar,J (2008).�Turnaround@ Motorola India Mobile Devices Business through the HR Lever�, Vikalpa,33(1),119-129.

Srivastava,A K and Kulkarni,V (2009).� Disinvestment of National Aluminium Company Limited (NALCO):A Public Sector

Enterprise�,South Asian Journal of Management,16(3),104-131.

Taxak Ramesh H and Manjeet, K (2009). � Service Quality Perceptions:A Case Study of Banking Services�, Journal of Banking,Information


CUSTOMER RELATIONSHP MANAGEMENT

Mudliar,M (2010).�Creating Customer Equity in Emerging Markets�, Aweshkar,9 (1),103-116.

Index of Articles


Tripathi,S N (2009).�An Analysis of Customer Pull Factors and Process of Store Loyalty�, Paradigm, 13 (1),91-103.

DECISION MAKING

Lee.Y and Chen,S and Huang,C (2010).�The Moderating Effect of Brand Loyalty on the Relationship Between Promotion Activities

and Consumers Purchase Decision Making�, AIMS International Journal of Management�,04(2),93-106.

Narayan,K and Sequeira,A H (2010). � The Bounded Rationality and Behavioral Influence on Career Decisions : A Study on VoluntaryRetirees of PSU Bank�,AIMS International Journal of Management�,04(2),107-118.

E-COMMERCE BUSINESS

Balaram and Adhikari,B (2009).� E-Governance : A Medium for Moving towards Good Governance�, Administration and Management

Review,21(1),119-141.

Bapna,R and Chang,Seokjoo (2009).� Overlapping Online Auctions : Empirical Characterrization of Bidder Strategies and Auction

Prices�, MIS Quarterly,33(3),763-783.

Chaturvedi,A and Badlani,M (2009).� Effects of Security Aspect on Consumers Satisfaction Level in Internet Banking�, Journal of


Mishra,S (2009).� A Conceptual Framework for Creating Customer Value in E-Retailing in India�, South Asian Journal of


Prasad, J S and Aryasri,A R (2009).� Determinants of Shopper Behaviour in E-tailing : An Empirical Analysis�, Paradigm,XIII(1),73-83.

Shah,A ; Monahan,M and Jochum,R (2010).�Internet Viewing and Buying Habits : A Cross Cultural Study�, AIMS International

Journal of Management,04(3),149-162.

Sharma,Sanjeev and Goyal,N (2009).�E-Mails as an Emerging Tool of E-Marketing:An Exploratory Study�, Journal of


Sia C L ; Lim,K H and Leung Kwok (2009).� Web Strategies to Promote Internet Shopping: Is Cultural Customization Needed�, MIS

Quarterly,33(3),491-512.

Wang,W and Benbasat I (2009). � Interactive Decision Aids for Consumer Decision making in E-commerce :The Influence of PerceivedStrategy Restrictiveness�, MIS Quarterly,33(2),293-320.

Watanabe,C;Akaike,S and Shin Jae-Ho(2010).�Hybrid Management of Technology Towards A Service-Oriented Economy : Co-

Evolutionary Domestication by Fusing East and West �, Journal of Services Reserch,9(2),7-50.

ECONOMICS

Andoh,Charles.(2010) ,�GARCH family Models under Varying Innovations�, Decision,37(1),21-56.

Arabi,U (2009).� Foreign Exchange Market Behaviour and its Management in the Post-Reform Period : The Indian

Experiences�,Prajnan,38(1),41-50.

Banerjee,Prashanta k and Adhikary,B K (2009).� Dynamic Effects of Interest Rate and Exchange Rate Charges on Stock Market Returns

in Bangladesh�, Prajnan38(1),27-40.

Bhattacharyya,M(2009).�A Study of Issuer Rating Service with an Appraisal of ICRAs Rating Model�,Indian Journal of Accounting,

39(2),53-60.

Bodla,B and Kumar,A (2009).� Foreign Institutional Investors and Macroeconomic Variables in India : A Study of Causal Relation�,

Paradigm, 13(2),80-87.

Chawla,D and Jha,V S (2009).�Forecasting Production of Natural Rubber in India�, Paradigm, 12 (1),39-55.

Chittoor,R (2009).� Internationalization of Emerging Economy Firms Need for New Theorizing�,The Indian Journal of Industrial

Relations,45(1),27-40.

Gupta,R (2010).�Movement of SENSEX : Domestic and International Factors�, Finance India, 24(1),85-96.

Jagannathan,S and Roy,K (2009).�Understanding Indian Trade Union Existence in the Zeitgeist of the Global�, The Indian Journal of

Industrial Relations,45(2),181-194.

Kasilingam,R and JayaBal,G (2009).� A Study on the Perception of Investors towards Small Saving Schemes�, Paradigm, 13(2),1-12.

Khanna,T (2009).� The Globally Competitive Indian Firm�, The Indian Journal of Industrial Relations,45(1),4-10

Maheshwari,M and Singh,M (2009).� Child Labour in India : From Welfarist to Economic Perspective�,South Asian Journal of

Management ,16(4),84-110.

Ministry of Finance (2010).�Indian Economy : General Review 2009-10", Finance India, 24 (1),37-64.

99

Mishra,S K (2009).The Effect of Price Index on Food Poverty : A Study of Urban Poverty in Chhattishgarh�, IIMB Management

Review,21(1),30-40.

Nguyen,C V ; Ewing,J H and Nuwal,T C (2010).�Impact of the US Subprime Mortgage Crisis on the Mexican Economy�, AIMS

International Journal of Management,04(3), 207-218.

Pradhan,R P (2009).� Trade Openness and Economic Growth : Evidence from Trivariate Causality�, Prajnan,38(1),99-110.

Prusty,S (2009).� Analysis of Poverty,Openness and Literacy in India�, Paradigm, 13(2),57-63.

Ramamurti,R (2009).� The Theoretical Values of Studying Indian Multinationals�, The Indian Journal of Industrial Relations,45(1),101-114.

Rawat,D and Agarwal,K (2010).� Macro Economic Effects of VAT in India�, Finance India, 24 (2),493-504.

Salunkhe,U and Paila,A R (2010).�Global Recession : Management Strategies for Economic and Market Recovery�, Aweshkar,9 (1),77-

86.

Sinha,S and Gupta,C P (2009).� Challenges in Empirical Estimation of Term Structure in India� ,Paradigm, 13 (2),110-115.

Sundar,K R S (2010).Emerging Trends in Employment Relations in India�,The Indian Journal of Industrial Relations,45(4),585-595.

Swamy,M R (2009).� Empirical Testing of the Kumara Swamy Theorem of Inflationary Gap: Nigerian Economy in Perspective�,

Journal of Financial Management and Analysis,22(1),61-66.

Taludar,K C and Sahewalla,I (2010).�Temporal Growth,Instability and Trade Opportunity of Indian Tea in Context of GlobalCompetition�, Finance India, 24 (2),481-492.

Tardivo,G and Viassone,M (2009).� How Attractive are Italian Regions for Foreign Investment Methodological Approach�, Journal of

Financial Management and Analysis,22(1), 48-60.

Tripathi,S and Singh,S (2009).� Indias Trade Investmernt Relation with GCC Countries in WTO Era�, Pragyaan,7(1),86-92.

Zafar,S M T (2009).� A Strategic Study on Fundamental Analysis of Automobile Industry ( Commercial Vehicle ) in India �,Pragyaan,7(1),24-38.

EDUCATION

Anitha J and Krishnaveni R (2008).� Towards Standardizing Education : Specific Dispositions for Educators and their Impact on

Teachers Efficacy�, Vikalpa,33(1),85-92.

Azam,Mehtabul and Blom,A (2009).� Progress in Participation in Tertiary Education in India from 1983 to 2004", Journal of Education

Planning and Administration, 23(2),125-168.

Basu,A (2010).�Comparing Entrepreneurial Intentions Among Students : The Role of Education and Ethnic Origin�, AIMS International

Journal of Management, 04(3),163-176.

Buragohain,T (2009).Poverty and Student Dropout in Orissa�, Journal of Education Planning and Administration,XXIII (2),169-184.

Dey,A (2008).�Developing Strategic Fit: Teaching Models and Types of Indian Management Institutes�,Business Perspectives,10(1),1-12.

Gill,A S and Brar, J S (2009).� Public Spending on Higher Education in Northern States(india) : Post Reform Levels and Trends�,

Journal of Education Planning and Administration, 23 (1),49-66.

Khurram,S (2009).� Perceived Organizational Support,Antecedents and Consequences Proposing and Testing a Model in a Public

Sector University of Pakistan�, South Asian Journal of Management,16(1),7-26.

Maital,S ; Prakhya,S. and Seshadri,DVR(2008).�Briding the Chasm between Management Education,Research and Practice: Moving

Towards the Ground Theory Approach �, Vikalpa,33(1),1-18.

Patnaik,P (2009).� Challenges before Higher Education in Developing Societies�, Journal of Education Planning and Administration,

23 (2),101-110.

Rogers,H (2009).� Aid Effectiveness in Education : Setting Priorities in a time of Crisis�, Journal of Education Planning and

Administration,23 (1),5-16.

Sengupta,A and Pal,N P (2009).� Poverty and Efficiency in the Primary Education System of India: An Analysis based on DISE Data�,

Journal of Education Planning and Administration, 23 (1),33-48.

Sharma,A(2010).�Development of Professional Education in India: A Study of Intra and Inter Stream Variations�, Business

Perspectives,10(1),59-70.

Shrestha,D P (2009).� Managing Higher Education Institutions �, Administration and Management Review,21(2),22-39.

Singh,D P and Singh,M (2009). Teachers Absenteeism in Punjab : Exploring the Extent and Reasons�, Journal of Education Planning

and Administration, 23 (1),245-256.

Index of Articles


Sundaram,K (2009).� Fair Access to Higher Education Re-visited:Some Results for Social and Religious Group from NSS 61st Round

Employment and Unemployment Survey,2004-2005", Journal of Education Planning and Administration,23 (21),115-124.

Varghese,N V (2009).� Globalization the Current Economic Crisis and Higher Education Development �, Journal of Education

Planning and Administration,23 (3),223-244.

Zaveri,B(2009).�Changing Leadership for Changing Times: Critical Approaches to Leadership in Education�, Udyog Pragati,33(4),18-

25.

ENTREPRENEURIAL MANAGEMENT

Dhargalkar,K (2010).� Rural Entrepreneurship�, Aweshkar,9 (1),89-102.

Kumar,K (2009).� The Role of Local Entrepreneurship and Multinational Firms in the Growth of IT Sector:An Exploratory Study of

Bangalore�, South Asian Journal of Management,16(3),24-42.

Latha, K l and Murthy, B E (2009).� The Motives of Small Scale Entrepreneurs : An Exploratory Study�, South Asian Journal of


Maital,S ; Ravid S and Seshadri,D V R (2008).�Towards a Grounded Theory of Effective Business Incubation�, Vikalpa,33(4),1-14.

Mamman,A ; Baydoun,N and Adeoye, B (2009).� Transferability of Management Innovation to Africa : A Study of Two Multinational

Companies Performance

Management System in Nigeria�, Global Business Review,10(1),01-31.

Mathews J (2008).� Entrepreneurial Process:A Personalistic Cognitive Platfrom Model �, Vikalpa,33(3),17-34.

Rao,P S and Lokhande ,M (2010).� Micro Credit for Women Micro Entrepreneurs : A Study�, Aweshkar,9 (1),62-76.

Rathna, K G and Vijaya,T G (2009).� Competencies of Entrepreneurs and Intrapreneurs : A Comparative Study�, South Asian Journal

of Management,16(2),28-60.

ETHICS

Akhter,I A; Islam,S and Uddin,G M (2009).� Managerial Ethics : Evidence and Analysis in the Context of Bangladesh Corporate Sector�,

South Asian Journal of Management,16(2),76-90.

Sekerka,L E (2009).Organizational Ethics Education and Training : A Review of bestpractices and their application�, International


Shakya,U (2009).� Ethics in Nepalese Civil Services Sector : How does it Matter�, Administration and Management Review,21(2),88-

107.

Sharma,B R and Chandra,V (2009). � Managers in the Making : Their Socio Economic Background, Values and Attitudes�, Journal of

Education Planning and Administration,23 (1),17-32.

FINANCE

Adlakha,A (2009).�It is Really a Viable Option to Invest in Insurance Products? A Study of ICICI Prudential Life Insurance in

Dehradun�, Pragyaan,7(2),64-69.

Agarwal,A ;Penm, J H W and Terrell,R D (2010).�A New Copula Approach for Pricing an Artificial Collateralised Debt Obligationbacked by Credit Derivatives�, Finance India, 24(2),397-417.

Agarwal,J D (2010).�Union Budget 2010 Suffering From Major Flaws�, Finance India,XXIV (1),1-06.

Agundu,U C and Dagogo (2009).�Driving Nigerian SMEs Venture Capital Transformational Financing Supper-Highway ; Focus on

the Nigerian Economy�, Journal of Financial Management and Analysis,22(2),49-58.

Aissia,.D and Hallarqa,S (2010).�Differences of Opinion, Short Sale Constraints and Negative Asymmetric : An Empirical Study on

Tunisian Stock Market�,Finance India,XXIV (2),505-514.

Arora,R K and Jain,P K (2009).� Behaviour of Stock Returns in Selected Emerging Markets�, Journal of Financial Management and

Analysis,22(2),13-25.

Bekerman,G and Selmi,F (2010).�The Expected Utility Criterion and the Informational Advantage of Higher Order Moments :

Application to Option Hedging�, Finance India,24(2),465-480.

Bhalla,A K and Arora,P (2009).�Competitive Dynamics of Indian Finance Industry�, Paradigm,13(1),28-38.

Bhayani,S J (2009).�Impact of Financial Leverage on Cost of Capital and Valuation of Firm : A Study of Indian Cement Industry�,

Paradigm,13(2),43-49.

Broca,D (2009).� The Probabilistic Structure of Indian Stock Returns�, Prajnan,38(2),71-80.

Chakraborty M (2009).�Share Price Reaction Around Buyback Announcements in India: An Empirical Investigation�, Udyog

Pragati,33(3),16-30.

101

Chatterjee,S (2009).� Expansion of Institutional Credit : A District Level Study of Rural West Bengal �, Prajnan,38(4),285-308.

Dhameja,N (2010).� Global Financial Crisis :Impact, Challenges and Way-out �, The Indian Journal of Industrial Relations,45(3),336-

349.

Dubey,R (2010).�An Alternate Approach to Determine Single Name CDS Spreads:Natural Extensions of the Merton Model of Corporate

Default �,Decision 37(1),73-82.

George,R (2009).�Price Reactions to Index Reorganization Announcements: Indian Evidence �, Paradigm, 13(2),88-97.

Guhathakurta K.;Bhattacharya B. and Chowdhury,A (2010).�Using Empirical Model Decomposition to Compare Gaussian and Non-

Gaussion model of Stock Price Distribution,�Decision (37(1),101-122.

Gupta,S ; Sharma,R K and Aggarwal, P K (2009).� Determinants of Capital Structure : A Study of Indian Cement Industry�,

Pragyaan,7(2),19-23.

Howat,J and Sundararajan,S (2009).� Changes in the Federal Funds Rate Target and Stock Prices�, Prajnan,38(4),309-320.

Hyderabad,R L (2009).�Price Performance Following Share Buyback Announcements in India�, Vision,13(1),59-78.

Iyengar,R J and Zampell,E (2010).� Does Earnings Quality Affect CEO Pay? �, Finance India,XXIV (2),419-432.

Jasmeen,S (2009).�Perceived Risk Appetite Among Individual Investors : A Study�,

Indian Journal of Accounting, 39(2),44-52.

Kale, P (2009).� The Global Indian Firm :Growth and Value Creation through Overseas Acquisitions�,The Indian Journal of Industrial

Relations,45(1),41-53.

Kanwal A and Kapoor S (2008).� Relevance of Signaling and Smoothing Approach to Dividend : A Study of Indian FMCG Sector�,

Business Perspectives (10(1),13-22.

Kapil,S (2009).� Need for Credit Derivatives in India�, Pragyaan,7(1),39-43.

Kaur,Parmjit and Gill,S (2009).� Patterns of Corporate Ownership : Evidence from BSE 200 Index Companies �, Paradigm, 13(2),13-28.

Ketabi,S and Abzari,M (2010).� A Heuristic Algoritham for Portfolio Optimization�,Finance India, 24(2),433-441.

Kumar,B R and Panneerselvam,S (2009).� Mergers,Acquisitions and Wealth Creation : A Comparative Study in the Indian Context �,

IIMB Management Review,21(3),222-244.

Kumar,M and Thenmozhi,M (2009).� Forecasting Stock Index Movement Using Support Vector Machines and Random Forest Method�, IIMB Management Review,21(1),41-51.

Kumar,P and Saxena,A K (2009).�Timeliness of Corporate Internet Financial Reporting in India : An Empirical Research�, Journal of


Lusk,E J (2009).� Market and Financial Performance as Related to Idiosyncratic Risk and the Effect of Outlier Screening in Market

Studies�, Journal of Financial Management and Analysis,22(2),59-69.

Mehta,C; Jain,P K and Yadev,S V (2009).� Rationale of Stock Dividends/ Bonus Shares : An Empirical Study of Private Sector

Enterprises in India �, Journal of Financial Management and Analysis,22(1),28-39.

Moschidis,O and Spathis,C (2009).� Methodological Approach to Multidimensional Exploratory Evaluation of the Tax is (Taxation

Information System ) Usefullness : Greek Economy in Perspective�, Journal of Financial Management and Analysis,22(2),1-

12.

Mukherjee,P ( 2010).� Union Budget 2010-2011", Finance India,24(1),7-36.

Nirmala Devi,A (2010).�Current Account Determinants of Indias Balance of Payments : An Analysis�, Finance India, 24 (1),119-129.

Quah,C H and Crowley,P M (2009). � A Reconsideration of the Great Depression�, South Asian Journal of Management,16(3),7-24.

Ramakrishnan K (2008).�Long Term Post Merger Performance of Firms in India �, Vikalpa,33(2),47-63.

Rao,S K (2009).�Financial Management Analysis of Knowledge Capital through Techno Economic Empowerment�, Journal of Financial

Management andAnalysis,22(1),40-47.

Ravi, J ; Kifle,S and Rao,P (2009).� Financial Leverage:A Study of Selected Ethiopian Companies�, Journal of Banking,Information


Reddy Y V and Sebastin A (2008).� Interaction Between Forex and Stock Markets in India : An Entropy Approach�, Vikalpa,34(4),27-

46.

Sahoo,S and Rajib,P (2009).� Investment Bank Prestige and IPO Underpricing : An Empirical Study�, IIMB Management Review,21(3),189-221.

Saini,P D (2009).� Impact of Market Conditions on Investment Profiling in Changing Market Conditions : An Empirical Study of

Mutual Fund�,Indian Journal of Accounting, 39(2),1-10.

Index of Articles


Salwan,P (2009).�Internationalizing Business Model for Reinventing the Companys Fortunes�, The Indian Journal of Industrial

Relations,45(1),84-100.

Saraogi,A (2009).�Exploring Franchisee Relationship : Building a Predictive Model of Franchisee Performance�, Vision,13(1),31-58.

Sehgal,S and Tripathi,N (2009).�Investment Strategies of FIIs in the Indian Equity Market �, Vision,13(1),11-18.

Sener,T and Mandact,P (2010).�Integration vs Segmentation in the Global Equities Markets�, Finance India, 24(1),97-107.

Shan,P and Aparna A (2009).�Simulating Inventory Parameters to Study their Effect on Bullwhip Effect Phenomenon�,Udyog

Pragati,33(3),24-30.

Shanmugham, R (2010).�Locus of Control, Investment Knowledge and Behaviour of Retail Investors�, Finance India, 24 (1),109-118.

Shirur S (2008).�Dilemma of Corporate Action ; Empirical Evidence of Bonus Issue Vs.Stock Split �, Vikalpa,33(3),35-48. Siddiqui,S(2009).�Stock Markets Integration : Examining Linkages between Selected World Markets�, Vision,13(1),19-30.

Siddiqui,S and Singh,S (2009).�Behaviour Influence on Stock Market Investments: A Survey�, Pranjana,12(2),95-104.

Singh Y P and Harneja A (2009).� Personal Insurance Decision-Making Process in India: An Empirical Study�, Journal of


Skidelsky,R (2010).� The Crisisof Capitalism : Keynes Versus Marx �, The IndianJournal of Industrial Relations,45(3),321-335.

Sondhi,H J and Jain, P K (2010).� Market Risk and Investment Performance of Equity Mutual Funds in India : Some EmpiricalEvidence�, Finance India, 24(2),443-464.

Srivastava A ; Yadev S and Jain,P K (2008).�Significance of Non Price Variables in Price Discovery ; An Empirical Study of Stock Option

Market in India�, Vikalpa,33(2),15-24.

Subrahmanyam,N (2009).� Microfinance and SHG-Bank Linkage:Regional Analysis and Perspectives�,Prajnan,38(3),183-202.

Swamy,M R (2009).� Financial Management Call for New Approach to Ethical Based Financial Statement Analysis�, Journal of

Financial Management andAnalysis,22(2),70-84.

Verma,K K and Tiwari,P (2009).� Analysis of Customers Expectations towards Share Brokers ; A Study�, Pranjana,12(1),64-78.

Wang,Janchung (2010).� Market Imperfections and the Pricing of Currency Futures�, Finance India,24 (1),65-84. Zipkin,P (2009).�Quality

Snags in the Mortagage Finance Supply Chain�,Quality Management Journal,16(3), 7-18.

GENERAL

Balooni,K and Inoue,M (2009).� Joint Forest Management in India : The Management Change Process�, IIMB Management

Review,21(1),1-17. Bhuiyan,S I (2009).�Strategies for Developing Media Managers For Convergence: An Analysis of Perspectives

from Management Theory and Practice for Managers of Converged Newsrooms �, Pranjana,12(2),1-15.

Biswas,M (2009).� Measuring the Construct of Workplace Forgiveness: A Confirmatory Assessment Using SAS Proc Calis Procedure�,

South Asian Journal of Management ,16(4),148-162.

Chaturvedi,S and Gaur,A S (2009).� A Dynamic Model of Trust and Commitment Development in Strategic Alliances�, IIMB

Management Review,21(3),173-188.

Ichima,S (2009).�Urban Farming and Food Security in Nigeria�,Pranjana,12(1),16-20.

Kaul A and Pandit A (2008).�Playing the Game of Communication : Enhancing Skills through a Reading of Literature �, Vikalpa(33),1-14.

Mamman,A ;Baydoun,N and Liu,k (2009).�Exploring the Meaning of Globalization in Beijing�, Global Business Review,10(1),67-86.

Munapo,E ; Kumar,S and Khan,L (2010).�Search over the Integer Polyhedron for a Pure Integer Program�, AIMS International

Journal of Management,�04(1),135-144.

Priyadarshini,R and Mahedran R (2009).� Prospects of Semi Conductor Industry with Reference to India�, Udyog Pragati,33(3),58-64.

Raghavan A (2008).�Going Global and Taking Charge: The Road Ahead for the Indian Manager�, Vikalpa,33(4),61-68.

Ramachandran,K and Marisetty V B (2009).�Governance Challenges for Family Controlled Firms while Globalising�, The Indian

Journal of Industrial Relations,45(1),54-61.

Ramana,C V ;Raman,K J and Aryasri,R (2009).� Influence of Socio-Demographic Factors on Entrepreneurial Attributes and Success�,South

Asian Journal of Management ,16(4),111-126.

Ray.S and gubbi,S R (2009).�International Acquisitions by Indian Firms : Implications for Research on Emerging Multinationals�, The

Indian Journal of Industrial Relations,45(1),11-26.

Singh,B and Saxena,D (2009).�Diagnostic Study of Chamoli District Beekeeping SMEs Cluster�, Pranjana,12(2),105-115.

Singh,S ; Pandey,A and Rajkamal (2009).� Evaluation of the Advance Booking

Scheme Launched by Pioneer Hi-Bred International Seeds�,Pragyaan,7(1),79-92.

103

Smith,M D and Telang,R (2009).� Competing with Free : The Impact of Movie Broadcasts on DVD Sales and Internet Piracy�, MIS

Quarterly,33(2),321-338.

Thatchenkery,Toja (2009).� Appreciative Intelligence for Innovation in Indian Industry�, Paradigm,13(1),1-5.

Tuladhar,B R (2009).� Managing Systems Approach to Earthquake Disaster Preparedness Problems �, Administration and Management

Review,21(1),32-45.

Tuladhar,S M (2009).� Liberating Oppressed Class,Community and Gender : Some Reflections�,Administration and Management

Review,21(1),46-57.

Verma,Harsh V (2010).� Mission Statements - A Study of Intent and Influence�, Journal of Services Research,9(2),153-172.

Wang,G G and Rothwell,W J (2009).� Management Development in China : A Policy Analysis �, International Journal of Training and

Development,13(4),205-220.

Watanabe,C ;Yamauchi,S and Shin Jae-Ho(2010).� Fusing East and West for High-Profitable Resilient Structure in Mega-Competition:

A Lesson from Shin-Etsu Chemicals Global Co-Evolution Strategy�, Journal of Services Research,9(2),123-152.

HUMAN RESOURCE MANAGEMENT

Acharya,S P (2009).� Stimulus- Job Satisfaction Relationship Survey on Bank and Financial Institution Supervisors in Nepal�,

Administration and Management Review,21(1),58-101.

Adhikary,D K (2009).� The Art of Management Practices : Organisational and Managerial Effectiveness�, Administrative and Management

Review,21(1),1-15.

Ahmed, J D and Hossain,T (2009).� Industrial Safety in Readymade Garment Sector : A Developing Perspective�,Administration and


Bhandri,A K (2010).� Does Union Membership Pay Off? Evidence from Organized Indian Manufacturing Industries�,The Indian


Biswas,M (2010).� Aesthetic Labour in India : Locating and Mapping the Mind of the Practitioners-An Application of Chaid Algoritham�,Journal of Services Research,9(2),81-104.

Bodla,M A and Danish,R Q (2009).� Job Satisfaction and Job Involvement as Mediators of the Relationship Between Psychological

Climate and Turnover Intention�,South Asian Journal of Management,16(1),27-43.

Bordogna,L (2010).� Strikes in Europe : Still a Decade or the Eve of a New Upsurge?�, The Indian Journal of Industrial Relations,45(4),658-

670.

Budria,S and Telhado P (2009).The Contribution of Vocational Training to Employment, Job-related Skills and Productivity : Evidencefrom Madeira�,International Journal of Training and Development,13(1),53-72.

Casillas,J C and Moreno,A M (2010).�Managerial Capabilities and Performance : An Empirical Examination of Casual Relationship�,

AIMS International Journal of Management,�04(1),09-32.

Collins,D ; Bray,M and Burgess,J (2010).�Green Jobs,Environmental Sustainability and Industrial Relations�, The Indian Journal of


Cox,C B and Beier,m E (2009).The Moderating effect of individual differences on the relationship between the framing of training andinterest in training �, International Journal of Training and Development,13(4),247-261.

Davar,Y P (2009). � Antecedents of Households Investment Decision Making Process : A Study of the Indian Households,� South

Asian Journal of Management,16(4),44-83.

Deshpande,S and Jairath,N (2010).�Developing a Scale to Measure � Initiative �, Aweshkar,9 (1),117-139.

Fashoyin,T (2010).� Changing International Industrial Relations : A Summary�, The Indian Journal of Industrial Relations,45(4),513-

521.

Gupta,J M and Sasidhar,B (2010).�Managing Conflicts in Organizations : A Communicative Approach�, AIMS International Journal

of Management,04(3),177-190.

Gupta,P R S (2009).� Workers Approach to Management of Interpersonal Conflicts in Tea Gardens in West Bengal�, Prajnan,38(4),321-

338.

Hardre, P L and Reeve J (2009).� The Role of Cross-Cultural Absorptive Capicity in the Effectiveness of in-Country Cross- Cultural

Training�, International Journal of Training and Development,13(3),148-164.

Hassan,H and Hoshino,Y (2009).�Long-Term Employment Contracts in Japanese Companies and the Corporate Profitability in the

Post Economic Bubble Era�, Journal of Financial Management and Analysis,22(2),26-48.

Hayter,Susan (2010).� International Comparative Trends in Collective Bargaining�, The Indian Journal of Industrial Relations,45(4),596-

608.

Hazarika A (2008). �Leading and Executing Industry Change through a Learning Network�,Vikalpa,33(3),63-78.

Index of Articles


James,P D and Zeltmann,S (2009).The Role of Competence Level in the Self Efficacy Skills Relationship: An Empirical Examination of

the Skill Acquisition Process and its Implications for Information TechnoogyTraining �, International Journal of Traini.

Joseph,J (2010).� The Dynamic of Strategic Militant Managerialism : Analysis of a Strike�,The Indian Journal of Industrial

Relations,45(4),671-693.

Kelly,J and Hamann,K (2010).�The Puzzle of Trade Union Strength in Western Europe Since 1980", The Indian Journal of Industrial

Relations,45(4),646-657.

Krishan,T N (2010).� Technological Change and Employment in India�, The Indian Journal of Industrial Relations,45(3),367-380.

Laohavichien,T and Fredendall,L (2009).� The Effect of Transformational and Transactional Leadership on Quality Improvement�,

Quality Management Journal,16(2), 7-24.

Laxminarayan,E (2010).�Application of Principles of Warfare to the Corporate World and Leadership Implications�, Aweshkar,9

(1),150-167.

Lehtimen,E and Gruber,H (2009).� Predicting Autonomous and Controlled Motivational Transfer Training�, International Journal of

Training and Development,13(1),124-138.

Michelson,G (2009).� The Dynamic Evolution of Urban Industrial Mission in Korea �, The Indian Journal of Industrial Relations,45(2),163-

180.

Munaf,S (2009).� Motivation, Performance and Satisfaction among University Teachers : Comparing Public and Private Sector in

Pakistan and Malaysia�, South Asian Journal of Management ,16(4),7-28.

Nandan,S and Dhariyal,S (2009).�Trends and Issues in Crooss Cultural Training of Expatriates : A Review of Literature�, Pragyaan,7(1),44-

53.

Oiry,E (2009).� Electronic Human Resource Management : Organizational Responses to Role Conflicts Created by E-learning�,

International Journal of Training and Development,13(2),111-123.

Pendse,P (2010).� Leadership:Mind Map�, Aweshkar,9 (1),87-88.

Prakash S and Bhati A (2008).� Determinations of Job Satisfaction - A Study of Managerial Cadre of Indian Oil Corporation Ltd.�,Business Perspectives,10(1),37-58.

Prasad,A ; Kumar S and Ramaswami A (2009).�Cane and Able: Inclusion of the Differently-abled at Work Place�, Udyog Pragati,33(1),14-

27.

Prasad,V V D (2009).�Collective Bargaining Its Relationship to Stakeholders�, The Indian Journal of Industrial Relations,45(2),195-

202.

Priyadarshi,P and Kumar,P (2009).�Demographic Correlates of Work Values : A Study of Social Workers in India�,The Indian Journal

of Industrial Relations,45(2),277-288.

Rao T V (2008).� Lessons from Experience: A New Look at Performance Management Systems�, Vikalpa,33(3),1-16.

Rao, P K and Venugopal,P (2009).� Perceptual Factors in Quality of Work Life of Indian Employees�,Paradigm,13(1),104-109.

Rijal,S (2009).The Impact of Transformational Leadership and Organisational Culture on Learning Organisation : A Comparative

Analysis�,Administration and Management Review,21(1),102-118.

Saxena,S and Shah H (2008).�Effect of Organizational Culture on Creating Learned Helplessness Attributions in R&D Professionals:ACanonical Correlation Analysis�, Vikalpa,33(2),25-45.

Sayeed,O B (2010).� FIRO-Band Nurturant Task Leadership Model :Moderating Influence of Individual Differences�,The Indian


Sharma,A and Sharma R B(2009).� Self-Monitoring Personality Trait:An Exploratory Study on Employees of Indian Railways�, Journal

of Banking,Information Technology and Management,6(1),94-104.

Sharma,Baldev R (2009).�One More time : What Makes a Manager�, The Indian Journal of Industrial Relations,45(2),203-212.

Sharma,R D and Jyoti,J (2010).� Job Satisfaction of University Teachers : An Empirical Study�, Journal of Services Research,9(2),51-80.

Singh,C P ; Lather,A S and Goyal, D P (2009).� Building Relationship @ BPO India�, Paradigm, 13(1),110-114.

Singh,Manjeesh ; Bhattacharjee,V and Kodwani,A D (2009).Mapping Career Anchors in a Large Engineering Company : A Study�,Paradigm, 13(2),50-56.

Sivasankaran P;Kumar M M and Senthikumar P (2009).�Heuristic to Minimize Makespan in Uniform Parallel Machines Scheduling

Problem�,Udyog Pragati,33(3),1-15.

Soni,N (2009).� Size Effect Seasonality : An Empirical Study�, Indian Journal of Accounting, 39(2),1-10.

Srimannarayana,M (2009).�Measurement of Human Resource Activities in India�, The Indian Journal of Industrial Relations,45(2),265-276.

105

Srimannarayana,M(2010).�Line Management Responsibility in HRM : An Empirical Study�, The Indian Journal of Industrial

Relations,45(3),470-480.

Stuart,M and Martinez,M (2010).�Britains Trade Union Modernisation : State Policy and Union Projects�,The Indian Journal of


Szell,G (2010).�Changing Labour Relations in China�,The Indian Journal of Industrial Relations,45(4),554-565.

Tuladhar,S M (2009).� NASCs Role in Staff Training and Trainer Development�, Administration and Management Review,21(2),78-

87.

Zhao,S and Zhang,J (2010).� Impact of Employment Contract Law on Employment Relations in China�, The Indian Journal of


INFORMATION TECHNOLOGY

Angst,Cory M and Agarwal R (2009).�Adoption of Electronic Health Records in the Presence of Privacy Concerns : The Elaboration

Likelihood Model and Individual Persuasion�, MIS Quarterly,33(2),339-370.

Balijepally,V G ;Mahapatra,R and Nerur,S (2009).� Are Two Heads Better than one for Software Development ? The ProductivityParadox of Pair Programming�, MIS Quarterly,23(1),91-118.

Baranwal,V ; Sagar,M and Sharma,S (2009).� Response to Request for Proposals in IT Industry : Critical Success Factors�, IIMB


Basu,J;Sarkar,B and Bhattacharyya A (2009).�Change in Occupational Dynamics Due to Technology Upgradation: A Study in a

Cigarette Factory in Eastern India�,Udyog Pragati,33(4),01-12.

Cenfetelli, R T and Bassellier,G (2009).� Interpreation of Formative Measurement in Information Systems Research�, MIS Quarterly,33(3),

689-707.

Chowdhury,S M and Datta,D (2009).� Indian Telecom : Regulation,Spectrum Allocation and Dispute Management�, IIMB Management

Review,21(4),287-296.

Cyr,D ; Head,M and larios,H (2009).� Exploring Human Images in Website Design :A Multi-Method Approach�, MIS Quarterly,33(3),539-

566.

Desai,V S (2009).�Information Technology in Construction Industry Current and Future Trends�,Udyog Pragati,33(1),28-40.

Duan,W ; Gu,b and Whinston,A B (2009).� Informational Cascades and Software Adoption on the Internet : An Empirical Investigation�,

MIS Quarterly,23(1),23-48.

Dutta,A (2008).�A New Perspetive in Understanding The Role of Information Technology Features in Technology Use Pattern�,

Vikalpa,33(1),55-68.

Dutta,T and Ghosh,A.(2010).�Calibrating Arbitrage Free Implied Volatility Surface with Embedded Put-Call Parity�, Decision,37(1),57-

72.

Ghose,A (2009).� Internet Exchanges for Used Goods : An Empirical Analysis of Trade Patterns and Adverse Selection�, MIS

Quarterly,33(2),263-291.

Goo,J; Kishore,Rajiv and Rao,H.R.(2009). � The Role of Service Level Agreements in Relational Managemet of Information Technology

Outsourcing : An Empirical Study�,MIS Quarterly,23(1),119-145.

Guimaraes,T ; Armstrong C P and Jones,B M (2009).�A New Approach to Measuring Information Systems Quality�, Quality Management

Journal,16(1),42-54.

Guinea,A O and Markus, M L (2009). � Why Break the Habit of a Lifetime ? Rethinking the Roles of Intention,Habit,and Emotion inContinuing Information Technology�, MIS Quarterly,33(3),433-444.

Gupta,O K (2009). � A Pattern Recognition in a Virtual World �, Management and Change,13(1),87-96.

Hooda,S (2009).�Overcoming Corporate Training Barriers:WBT and CBT as an Effective Strategic Tool�, Journal of Banking,Information


Jatana,R (2009). �Is Information Technology Useful to Control Non-Performing Assets (NAPs) in Commercial Banks�, Journal of

Banking ,Information Technology and Management,6(2),99-107.

Johnson,Norman A and Cooper,R B (2009).� Power and Concession in Computer-Mediated negotiations: An Examination of First

Offers�, MIS Quarterly,23(1),147-170.

Kim,H and Kankanhalli,A (2009). � Investigating User Resistance to Information Systems Implementation : A Status Quo Bias

Perspective�, MIS Quarterly,33(3),567-582.

Kim,S S (2009).� The Integrative Framework of Technology Use : An Extension and Test�, MIS Quarterly,33(3),513-537.

Index of Articles


Kim,S S and Son,J (2009).� Out of Dedication or Constraint ? A Dual Model of Post-Adoption Phenomena and its Empirical Test in

the Context of Online Services�, MIS Quarterly,23(1),49-70.

Krentler,K and Singh,N (2009).� Internet Mavens in India�,Paradigm, 13(2),36-42.

Lacovou,C L and Thompson,R L (2009).� Selective Status Reporting in Information Systems Projects : A Dyadic Level Investigation�,

MIS Quarterly,33(3),785-810.

Liang,H and Xue,Y (2009). �Avoidance of Information Technology Threats : A Theoretical Perspective �, MIS Quarterly,23(1),71-90.

Narayanan, K and Bhat,S (2009).� Technological Efforts and Internationalization of IT Firms in India�, The Indian Journal of


Poole,M (2009).� Response to Jones and Karsten Giddenss Structuration Theory and Information Systems Research�, MIS

Quarterly,33(3),583-587.

Reddy,Y V and Rebello,R W (2009).� Artificial Neural Networks:A Tool for Forecasting Stock Returns�, Pragyaan,7(1),63-78.

Sharma,R ; Yetton,P and Crawford,J (2009).�Estimating the Effect of Common Method Variance : Method Pair Technique with an

Illustration from TAM Research�, MIS Quarterly,33(3),473-490.

Sykes,T A ;Venkatesh V and Gosain,S (2009).� Model of Acceptance with Peer Support : A Social Network Perspective to Understand

Employees System Use�, MIS Quarterly,33(2),371-393.

Wang,P and Ramiller, N C (2009).�Community Learning in Information Technology Innovation�, MIS Quarterly,33(3),709-734.

KNOWLEDGE MANAGEMENT

Kalaiselvan k.(2009).� An Affordable Approach to Knowledge Management �, (KM)� Pragyaan,7(2),8-18.

Sharma,A K and Gupta,O (2009). �Core Concept of Knowledge Management for New Generation Digital Libraries : An Analysis�,

Pragyaan,7(1),32-38.

LOGISTICS AND SUPPLY CHAIN MANAGEMENT

Ashraf,G Y and Raichoudhary,A (2009).�Greening the Supply Chain : A New Initiative in India with Special Reference to Chhatisgarh�,

Pranjana,12(1),79-87. Bhatti,R S and Kumar,P (2010).�Supply Chain and Mitigation Strategies : A Critical Review�, AIMS

International Journal of Management,�04(1),45-56.

hatterjee,S R (2009).�Trust and Learning as Moderators in Achieving Global Supply-Chain Competitiveness : Evidence from the

Chinese and Indian Auto-Component Sectors�, Global Business Review,10(1),87-102.

Datta,B K (2009).� BPCL Supply Chain Optimisation : Building a New Approach�, IIMB Management Review,21(2),111-127.

Friedrich,C and Isaacs,E (2010).� Service Delivery to SMEs : A Pilot Study of SMEs in the Western Cape,South Africa�,South Asian

Journal of Management,�,17(1),7-22.

Klein R and Rai,A (2009).� Interfirm Straqtegic Information Flows in Logistics Supply Chain Relationship�, MIS Quarterly,33(3),735-762.

Laeequddin,M (2009).�Supply Chain Partners Selection Criterion in United Arab Emirates : A Study of Packaged Food Products

Supply Chain�, Paradigm,13(1),20-27.

Moser,R and Wohlfarth S (2009).� Supplier Base Management in the Indian Automotive Industry : Conceptual Framework and

Empirical Analysis�,South Asian Journal of Management,16(1),63-91.

Rahman,S and Yang,L (2009).�Skill Requirement for Logistics managers in China: An Empirical Assessment�, IIMB Management

Review,21(2),140-148.

Raut,R D and Verma,R (2010). � A Multi-Criteria Decision Making Approach for Supplier Selection�, AIMS International Journal of

Management,�04(1),57-72.

Saosavaphak,A ; Shee,H K and Sadler,I (2009).�Supply Chain Collaboration in Distribution-Dealer Network�, IIMB Management

Review,21(2),128-139.

Venkatachalapathi,N.and Rao,A R (2010).�Simulation,Regression Analysis for Consistent Decisions in FMS Scheduling�, AIMS

International Journal of Management,�04(1), 33-44.

MARKETING

Adidam,P T (2009).� Mavenness:A Non Explored Trait of Quality Salespeople�, Paradigm,13(1),6-10.

Alan,A and Almarzuqi(2009).�Customer Behaviour Vis-A-Vis Loyalty Model : South

Asian Perspectives�, Pranjana,12(2),16-37.

Alin,J M and Juin,V (2009).� Quality Dimensions of the Customer Satisfaction:The Empirical Research of Goverment Hospitals

Support Services in Sabah State,Malaysia�,Pranjana,12(1),1-15

107

Balaram,M and Adhikari,B (2009).� Managing Customer Relationship in Service Organizations�, Administration and Management

Review,21(2),67-78.

Bhardwaj,R(2009).� Impact of Retail Attribute Perceptions on Consumer Satisfaction and Sales Performance�, Pragyaan,7(1),1-17.

Chakrabarti,S (2010). �An Empirical Analysis of the Influence of Consumer Evaluation Attributes in the Purchase of Fashionable Ethic

Wear in India�, Journal of Marketing and Communication,6(1),04-09.

hakrabarti,S and Baisya,R (2009).� Purchase of Organic Food : Role of Consumer Innovativeness and Personal Influence Related

Constructs�,IIMB Management Review,21(1),18-29.

Dastidar,S G and Datta,B (2009).� Demographic Differences in Consumer Exploratory Tendencies : An Empirical Examination�,IIMB


Gupta,K D (2009).� Changing Paradigms of Luxury Consumption in India: A Conceptual Model�, South Asian Journal of Management

,16(4),29-43.

Gupta,Y Singh,S and ; Singh,P (2009).� Self Help Groups and their Marketing Practices of Livestock Products: A Study conducte in

West Bengal�, Pragyaan,7(2),24-31.

Hoq,M Z and Sultana,N (2010).�The Effect of Trust,Customer Satisfaction and Image on Customers Loyalty in Islamic Banking

Sector�, South Asian Journal of Management,�,17(1),70-93.

Kalia,S and Rangenkar,S (2009).�An Empirical Study on Marketing of Financial Services and Products� ,Pranjana,12(1),100-110.

Kothari,R and Sharma,N (2010). �Defining and Measuring the Effect of Service Quality in Selection of a Mutual fund in Indian

Context �, Journal of Services Research,9(2),173-188.

Mahajan,S K ; Narkhede,B E and Mantha,S S (2010).� Retail Landscape in India �, Aweshkar,9 (1),51-61.

Mahapatra,S N (2009).� Post-Purchase Evaluation and Consumer Satisfaction : An Empirical Study on Small Size Passenger Cars�,Udyog

Pragati,33(4),41-53.

Mani,B T ; Ravichandran, K and Kumar,Arun(2009).� Employees Perception towards Service Climate - Hotel Industry in India: An

Empirical Study�, Pragyaan,7(1),39-44.

Manjappa D and Farahani, T 2008. �Estimating Consumer Welfare in Indian Mobile Telecommunications Market : An EmpiricalStudy�,Business Perspectives,10(1),71-78.

Namrata and Nayyar,S (2009).� Panacea for Environment: Green Marketing �, Journal of Banking,Information Technology and

Management,6,(2),18-22.

Negi,D and Kumar,M(2009).�Interrogating Customers Satisfaction Towards Services of Life Insurance Companies in Dehradoon�,

Journal of Banking,INformation Technology and Management,6(2),80-91.

Palanivelu,P and Kumar,S (2009).International Marketing Communication in Mobile Phone Industry : with Special Reference to

Chinese Market �, Pranjana,12(1),111-123.

Ranjan,J (2009).� Role of Analytical CRM in CRM Systems:Importance and Benefits�, Management and Change,13(1),169-188.

Seth,A;Momaya,K.and Gupta,H M (2008).�Managing the Customer Perceived Service Quality for Cellular Mobile Telephony : An

Empirical Investigation�,Vikalpa,33(1),19-34.

Sharma,S R ;Tiwari,P and Verma,H (2009).� Spousal Influence in Family Purchase Decisions : An Empirical Study�, Pragyaan,7(1),54-

62.

Sthapit,A and Bajracharya,P (2009).� Management of Sales Promotion in Nepal : A Perspective on Construction-Material Market�,

Administration and Management Review,21(2),01-21.

Vanniarajan,T and Alleswari,A (2010).Busqual and Repurchase Intention Among the Passengers : An Empirical Study�, Journal of

Marketing and Communication,6(1),10-17.

Varadharajan,P and Vikkraman,P (2010). The Efficacy of Schemes and Pack Wise Marginal Contribution Analysis of Pepsi in Coimbatore�,

Journal of Marketing and Communication, 06(1),18-25.

Venkatesakumar R and Ramkumar D (2009). �Consumers Consideration Set Formation - Role of Problem Recognition Styles and

Information Search Efforts�,Udyog Pragati,33(3),49-57.

ORGANIZATIONAL BEHAVIOUR

Afzal,H ; Butt,B Z ; Rahman, K U and Safwan, N (2009).� An Investigation of Intragroup Conflict and its Impact on Employees

Performance in Pakistani Banking Sector�,South Asian Journal of Management,16(1),92-101.

Awasthy,R Gupta,R K (2010).�Organizational Commitment of Indian Managers in Multinational Companies�, The Indian

JournalofIndustrialRelations,45(3),424-436.

Bajaj,H (2009). �Organizational Culture in Bank Mergers and Acquisitions �,The Indian Journal of Industrial Relations,45(2),229-242.

Index of Articles


Bodla,Mahmood A and Danish,R Q (2009).� Politics and Workplace : An Empirical Examination of the Relationship Between Perceived

Organizational Politics and Work Performance�, South Asian Journal of Management,16(1),44-62.

Dadhich A and Bhal K (2008).� Ethical Leader Behaviour and Leader Member Exchange as Predictors of Subordinate Behaviours�,

Vikalpa,33(4),15-26.

Desai,T P (2009).� Examining Gender Differences in Coping with the Organizational Strees among the Dual Career Couples : A Sample

in India�,Management and Change,13(1),97-126.

Famina,A S (2009).�OCTAPACE Profile and Human Resource Climate in a South Asian Public Sector Undertaking with Special

Reference to KSEF�, Pranjana,12(2),72-83.

Galanou,E and Priporas,C V (2009).� A Model for Evaluating the Effectiveness of Middle Managers Training Courses : Evidence from

a Major Banking Organization in Greece �, International Journal of Training and Development,13(4),221-246.

Ghosh,S K (2010).� Perceived Organizational Valuesand Commitmentto Organization

�,The Indian Journal of Industrial Relations,45(3),437-445.

Gupta,B (2009).� Understanding the Preferences of Creative and Non-Creative

Employees�, The Indian Journal of Industrial Relations,45(2),289-301.

Hardre,p L and Reeve, J (2009).Training Corporate Managers to Adopt a More Autonomy Supportive Motivating Style Toward

Employees : An Intervention Study�,International Journal of Training and Development,13(3),165-184.

Heijden,B V and Boon, J (2009).� Employability Enhancement Through Formal and Informal Learning : An Empirical Study Among

Dutch Non-Academic University Staff Members�,International Journal of Training and Development,13(1),19-37.

Jain,Ajay K (2010).� Organizational Citizenship Behaviour as a Potential Source of Social Power�, The Indian Journal of Industrial

Relations,45(3),396-410.

Jain,N ;Sethi,A and Mukherji,S (2009).Impact of Communication During Service Encounters on Customers Perception of Organization

Image�, Paradigm,13(1),56-65.

Jain,N and Mukherji,S (2010).�The Perception of Glass Ceiling in Indian Organizations : An Exploratory Study�,South Asian Journal

of Management,�,17(1),23-42.

Khatri,N (2009).�Consequences of Power Distance Orientation in Organisations�,Vision,13(1),01-10.

Lansbury,R and Wailes,N (2010).� Employment Relations and Right in the Global Automotive Industry�, The Indian Journal of


Markey,R and Harris,C (2010).� Employee Participation on Work Environment in Food Processing Industry in Denmark and New

Zealand�, The Indian Journal of Industrial Relations,45(4),622-634.

Narayanaswamy,R and Deshpande,S (2010).�Limits of Change : An India Centered Theory of the Innovative Organization�, Aweshkar,9

(1),140-149.

Pierce,H and Maurer,T J (2009).� Linking Employee Development Activity,Social Exchange and Organizational Citizenship Behaviour�,

International Journal of Training and Development,13(3),139-147.

Rogers,A and Spitzmuller C (2009).�Individualism Collectivism and the Role of Goal Orientation in Organizational Training�,International


Singh,A K (2009).� HRD Practices and Organization Culture in India�, The Indian Journal of Industrial Relations,45(2),243-254.

Sogra, K J ; Shahid,A I and Najibullah,S (2009).� Organizational Outcomes of the Employees Perceptions of Performance Appraisal

Politics : A Study on Executive MBA Student in Bangladesh�, South Asian Journal of Management,16(3),43-60. Srivastav,A K

(2009).� Control Climate in Public Sector : Relationship with Stress,Coping Strategy and Personal Variables�, Pranjana,12(1),51-

63.

Tripathi,S and Tripathi,Nachiketa (2009).� Influence Strategies and Organizational Success : Moderating Effect of Organizational

Culture�, The Indian Journal of Industrial Relations,45(2),213-228.

PRODUCTION MANAGEMENT

Kadu,R ; Deshpande,V S and Dorle,S A (2009).�Optimisation of Boring Process Parameters Using Taguchi Design of Experiment �,

Udyog Pragati,33(4),13-17.

Khanduja,R; Tewari,P C and Garg,S (2009).�Stochastic Behaviour and Maintenance Planning of the Washing System in a Paper

Plant�,Udyog Pragati,33(4),26-33.

King,B E (2010).� Time Constrained Workforce Scheduling as a Multiple Knapsack Problem�,AIMS International Journal of

Management,�04(1),1-8.

109

Patil S K (2009).�Design of Automation for Cottonseed Delinting Process�,Udyog Pragati,33(1),52-59.

Ramnath,B and Elanchezhian,C (2010).�Application of Analytical Hierarchy Process to Select Lean-Kitting Assembly for an Engine

Assembly�, AIMS International Journal of Management,�04(2),119-133.

Sidhu,H (2010).� Productivity Led Wage Disparityin the Indian Industry�, The Indian Journal of Industrial Relations,45(3),350-366.

Stolle,M and Moser,R (2009).� The Effect of Purchasing and Supply Management on Performance : A Structural Model�,IIMB


Vivek,N and Ravindran,S (2009).� An Empirical Study on the Supplier Performance on Organizational Performance: A Supply Chain

Perspective�, South Asian Journal of Management,16(3),61-70.

PSYCHOLOGY

Biswas,S (2010).�Commitment as a Mediator between Psychological Climate and Citizenship Behaviour�, The Indian

JournalofIndustrialRelations,45(3),411-423.

Mishra,P S and Mohapatra,A K D (2009).� Emotional Intelligence in the Occupational Settings : A Literature-Based Analysis of the

Concept and its Measurement�,South Asian Journal of Management,16(3),86-103.

Tyagi,A and Agrawal,R K (2010).�Emerging Employment Relationships : Issues and Concerns in Psychological Contract�, The Indian


QUALITY CONTROL

Deshpande,V S ; Keswani,I and Dhawankar,V (2009).� Efficacy of Six Sigma in Reducing Diesel Oil Consumption in a Steel Plant�,


Deshpande,V S and Meshram,S G (2009).� Rejection Control and Quality Improvement Using Statistical Process Control (SPC)�,


Finch,B J and Huang,X (2009).�Predictability of Impending Online Auction Business Failure : A P- Chart Analysis�, Quality Management

Journal,16(2),25-33.

Mahanti,R (2009).�The Application of Quality Function Deployment to User Interface Design�,Quality Management Journal,16(1),29-41.

Manjunath,U (2010).� Relationship among Quality Constructs for Total Quality Services Management in Hospitals in India�, AIMS

International Journal of Management,04(2),77-92.

Matre,J G V and Koch, K E (2009).� Understanding Healthcare Clinical Process and Outcome Measures and their Use in the Baldrige

Award Application Process�,Quality Management Journal,16(1),18-28.

Norton,W I and Sussman,L (2009).� Team Charters:Theoretical Foundations and Practice Implications for Quality and

Performance�,Quality Management Journal,16(1),6-17.

Rodchua,S (2009).�Comparative Analysis of Quality Costs and Organization Size in the Manufacturing Environment�, Quality

Management Journal,16(2),34-43.

Sampaio,P and Saraiva,P(2009).�A Statistical Analysis of ISO 9000 Related Data for European Union Ultra Peripheral and Portuguese

Regions�, Quality Management Journal,16(2),44-58.

Verma,D ; Gangele,A and Tiwari A (2009)� Prioritization of Engineering Attributes of the Product in Quality Function Development

through KanoQuestionnaire and Market Research�, Udyog Pragati,33(1),1-13.

STRESS MANAGEMENT

Singh,S K (2009).� Leveraging Emotional Intelligence for Managing Executives Job Stress : A Framework�, The Indian Journal of

Industrial Relations,45(2), 255-264.

Uen J ; Wu,T and Huang,H (2009).� Young Managers Interpersonal Stress and its Relationship to Management Development Practices:

An ExploratoryStudy�,International Journal of Training and Development,13(1),38-52.

Compiled by:

Manish AnandLibrarianPrestige Institute of Management and Research,Indore

Index of Articles


Statement of Ownership and Other Particulars About the Journal

PRESTIGE INTERNATIONAL JOURNAL OF MANAGEMENT AND RESEARCH

Form V

(Rule 8)

Prestige Institute of Management and Research

(An Autonomous Institution Established in 1994)

2, Education and Health Sector

Scheme 54, Indore 452 010

1. Place of Publication : Indore

2. Periodicity of Publication : Six-Monthly

3 Printer's Name : Dr. Yogeshwari Phatak

Nationality : Indian

Address : PIMR

4 Publisher's Name : Dr. Yogeshwari Phatak


Address : PlMR

5 Editor�s Name : Dr. Yogeshwari Phatak


Address : PIMR

6. Name and address of individuals who : Prestige Institute of

own the newspaper and partners or Management & Research,

shareholders holding more than one 2, Education and Health

percent of the total capital Sector, Scheme 54,

Indore 452010

7 Printed at : Sat Prachar Press Society,

Residency Area,

Indore-452 001, India

I, Dr. Yogeshwari Phatak, do hereby declare that the particulars given above are true to the

best of my knowledge and belief.

Sd/

Dated: Dr. Yogeshwari Phatak

convergence of gdp per capita in asean …2)-vol4(1).pdftesting the income convergence hypothesis....

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